Bank Charges - Fair or Unfair?
In the last couple of years there has been a dramatic increase in the amount of people reclaiming ‘unfair’ bank charges. As of the
24th April 2008 a High Court judge declared that the charges can be ‘unfair’, and thousands upon thousands of people have
since reclaimed vast sums of money from their banks.
Whilst it is evident that banks do have costs and they do need to function, is it really fair that they can charge us up to forty
pounds to cover ‘administrative costs’ if a cheque bounces or we go fifty pence over our overdraft limit? Surely it cannot cost this
large amount of money just for them to inform us that we have incurred a charge, especially in a year in which banks have noted
record profits, again.
The papers are frequented by stories of ‘unlawful’ charges; one recounts the story of a single mother who was subject to a thirty
pound charge for a returned direct debit. Because she did not have the finances to repay this, the charges built up and she
received over three hundred pounds worth of charges. Many see this as ludicrous, if the money is not there to begin with, how
are more charges going to solve the problem?
The banks might argue that she should have made sure that the money was there in the first place, why should they have to
cover for her negligence? Banks do need to guard themselves, especially with the on setting credit crisis. Yet something is
amiss, despite worldwide credit problems, UK banks are accumulating almost £3 billion a year in various service charges.
Ultimately the courts have declared that the charges are unfair and whilst the banks are challenging this decision, it’s up to you
the consumer, to claim what is rightfully yours. On the other hand, it is probably better that you make sure you have the finances
in place to start with and don’t rack up these debts in the first place. The best way to do this, of course, is to open a savings
account, and put a consistent amount in there every month to keep the wolves at bay. Try the Santander website for more on
savings.
In the last couple of years there has been a dramatic increase in the amount of people reclaiming ‘unfair’ bank charges. As of the
24th April 2008 a High Court judge declared that the charges can be ‘unfair’, and thousands upon thousands of people have
since reclaimed vast sums of money from their banks.
Whilst it is evident that banks do have costs and they do need to function, is it really fair that they can charge us up to forty
pounds to cover ‘administrative costs’ if a cheque bounces or we go fifty pence over our overdraft limit? Surely it cannot cost this
large amount of money just for them to inform us that we have incurred a charge, especially in a year in which banks have noted
record profits, again.
The papers are frequented by stories of ‘unlawful’ charges; one recounts the story of a single mother who was subject to a thirty
pound charge for a returned direct debit. Because she did not have the finances to repay this, the charges built up and she
received over three hundred pounds worth of charges. Many see this as ludicrous, if the money is not there to begin with, how
are more charges going to solve the problem?
The banks might argue that she should have made sure that the money was there in the first place, why should they have to
cover for her negligence? Banks do need to guard themselves, especially with the on setting credit crisis. Yet something is
amiss, despite worldwide credit problems, UK banks are accumulating almost £3 billion a year in various service charges.
Ultimately the courts have declared that the charges are unfair and whilst the banks are challenging this decision, it’s up to you
the consumer, to claim what is rightfully yours. On the other hand, it is probably better that you make sure you have the finances
in place to start with and don’t rack up these debts in the first place. The best way to do this, of course, is to open a savings
account, and put a consistent amount in there every month to keep the wolves at bay. Try the Santander website for more on
savings.
