Claiming Back Bank Charges

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Background

Between 2006 and 2007, Challengeyour.com was instrumental in supporting many consumers in reclaiming back unfair bank charges. For years, banks have been penalising customers up to £35 every time they go over their agreed overdraft limit or a cheque or direct debit failed. However, with minimum effort required from the consumer and the necessary pressure placed on the banks by companies such as ourselves, the disproportionate and unreasonable charges began to get refunded.

Court Process

With increasing media prominence and a groundswell of frustration by the public, the Office of Fair Trading and some of the major UK banks went to court to establish whether under Consumer Regulation Law, the OFT could challenge the banks penalty structure under grounds of fairness.

Whilst the court process took place, the Financial Services Authority stipulated that all consumer claims against the banks for refunds could be suspended, (although the banks carried on charging!), until a decision was made.

Throughout this time, Challengeyour.com believed the behaviour of the banks to be unlawful and was confident the courts would prevail. As such, thousands of consumers have continued to register with us and we have processed these claims with the banks, hoping to get priority in the event that the possibility of a reclaim re-opened.

Our confidence that a favourable outcome would come to the fore was supported by the courts with a positive hearing at both the High court in April 08 and the Court of Appeal in Feb 09 when favouring the OFT. The banks continued to dispute the outcome and the case was taken to the highest court in the land, the House of Lords, now called the Supreme Court.

Bank Charges Court Case outcome

On November 25, 2009, the Supreme Court came to the surprising decision that despite the previous two rulings, which went in our favour, under a legal technicality, the OFT did not have the ability to decide whether bank charges are unfair or not.

Although a massive disappointment to both Challengeyour.com and the many thousands of claimants whose claims are still on hold, the case is not over yet.

The Future of bank Charges

At challengeyour.com we are still keen to help. The current situation is still in some respects in the hands of the OFT who were given the implicit suggestion at the Supreme Court that they could appeal against the banks using another area of the law.

It is noteworthy to consider the comments of Lord Walker the head judge of the Supreme Court hearing. He suggested that Parliament had not given the 'degree of consumer protection afforded by the national laws of some other member states' In saying as much, he is implying that in this particular case, new laws will need to be introduced to prevent the banks taking advantage of their current ability to impose their own levies as they see fit.

In the meantime, Challengeyour.com is continuing to have huge success in other types of claims such as credit card charges and the mis-selling of Payment Protection Insurance which have not been affected by the court ruling.