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BankruptcyNews
Junior Member
358 Posts |
 Posted - 31 May 2007 : 10:37:55
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Take bank claims to watchdog
High-profile court cases are putting off some customers from reclaiming their bank charges.
But there is no need to take your case to court - you can simply complain to the Financial Ombudsman Service.
Not only is the service free, it is less complicated. And if you don't agree with the ombudsman's decision, you can still take your case to court.
But you cannot do it the other way round. Once a judge has made a ruling, you can no longer appeal to the ombudsman.
Earlier this month, a district judge in Birmingham found in favour of Lloyds TSB when customer Kevin Berwick tried to claim a refund of almost £2,000 in charges.
Some banks have attempted to use this decision to dissuade customers from complaining, but since it was a county court judgment it does not set a legal precedent.
However, Financial Ombudsman spokesman David Cresswell says: 'We are seeing letters from banks suggesting the Birmingham case is definitive. This is usually happening at local branch level. Often when we raise it at a senior level, head office agrees that the letters are wrong and stop any more going out.'
So far every bank charges case that has been taken to the ombudsman has resulted in the bank paying up before it has reached adjudication.
Thanks to our Fair Play On Charges campaign, which started in 2005, millions are demanding that charges on their current accounts, which can be as high as £39 a time, be paid back.
The ombudsman is receiving 1,000 complaints about bank charges a week - double the number they were getting until March.
However, you must complain in the first instance to the bank or building society before taking your case to the ombudsman. The amount of detailed evidence you need to gather to take your complaint to the ombudsman is less than that needed for a court case.
It's best if you have a list of charges, but you can simply tell the ombudsman that you believe you should be reimbursed for charges made by the bank between specified dates. 'That is enough for a valid complaint,' says Mr Cresswell. 'You don't have to quantify the loss specifically.
'We will ask the bank for the figures and data to support it, though most complainants do supply a list of the charges.'
Source: thisismoney.co.uk
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Take bank claims to watchdog
