Unfair Bank Charges – where do you stand?

Millions of UK bank customers had hoped the watchdog would challenge the ruling, but it has admitted there was only a limited chance that a second case would succeed, so where has this left the customers?

What will happen to a complaint I made months ago?

If your complaint was made on the basis of the fairness of the charges, then it will most likely be thrown out. The vast majority of claims for refunds were in relation to fairness, and as many consumers were urged to download refund letters from consumer websites, it is unlikely their claims will be upheld.

What chance is there of getting a refund now?

Chances of getting any type of refund is quite small, and according to the Office of Fair Trading it is unlikely individuals will be able to claim a refund for any outstanding charges as the law has now been clarified and banks are within their rights to make certain charges.

What are the exceptions to the rule?

Although the OFT could not comment on individual cases, consumers are only likely to succeed if they can prove a lack of transparency on the part of the bank. If the bank charges were laid out clearly, however, then there is little hope of getting a refund. Any claims which relate to transparency on the part of the bank would now be covered by the Consumer Credit Act, but as this act was only introduced 18 months ago, claims which relate to cases before this date will not be covered.

Can I still make a complaint?

If you still think you have a valid complaint, contact your bank, who should process your complaint in line with rules laid down by the Financial Services Authority (FSA). If you are not satisfied with the way in which your complaint is handled, or with the outcome, take your complaint to the Financial Ombudsman Service.