A Short Answer
In most of the cases mentioned below, yes.
The Supreme Court ruling only pertained to the jurisdiction of the Office of Fair Trade to decide if the overdraft charges were unfair or not.
Charges That Can Be Reclaimed
Charges that can be reclaimed or challenged are the following:
- Credit card fees
You can now file to reclaim these fees. Just make sure you read to the end of this article for the warnings and caveats.
- Mortgage Elevated Exit Fee
If you paid up your mortgage early within the last 3 years, there is a chance that you were unjustly charged a so-called elevated exit fee. If you were, then you can apply to reclaim it right now.
- Misrepresented Payment Protection Insurance
Some large banks have been caught selling payment protection insurance which was misrepresented when they were offered. These banks withheld the critical information that this insurance will only apply if you were out of work. These can also be reclaimed now.
The government has been especially good in ensuring that the public was properly warned about the bank charges and other unjust fees that were being applied with impunity.
However, there are some other warnings and caveats that must be kept in mind if you do decide to reclaim your bank charges.
Presence Of Unscrupulous Parties
Reclaiming the other bank charges is actually a simple matter since the government has made template letters available for download with the proper ready-made content
However, there are some unscrupulous parties that try to paint a picture that shows the process as a long and convoluted one. After doing so, they offer to do that for you and charge 20% of the total reclaimed.
It would be a very bad move to make use of such services due to a couple of reasons: one, to avail of such services, you have to hand over your personal bank records which are not only confidential but can also result in cases of identity theft or worse.
The other reason is what was stated earlier. That template letters abound on the Financial Ombudsman site and other sites. All that’s needed is to fill in the details and send it off to the bank in question.
The single biggest reason to stop someone in their tracks should they still be considering the use of such agencies is the fact that the Ministry of Justice has made it an offense for a company to offer to assist in the process of reclaiming bank charges.
Repercussions on Your Accounts
One must be aware that reclaiming charges can have some negative effects on the accounts in question. The banks have readied their responses to the expected deluge of requests for reclaiming so there may be a virtual minefield confronting the consumer.
For more information on:
- Banks’ Charges
- Credit Card Fees
- Final Words