Opening a bank account implies you have created a contract with the bank. If you bounce cheques or overdrawn your bank account, you could have in effect breached that contract and you can be forced to create repayment. However, the sum you pay has to be reflected as genuine costs and not exceeded the damages the bank must support. Penalties, in other words, are not to be applied, only the actual cost of the overdrawn account.
Although you haven't any right to be excused from legitimate charges, you can still try to reclaim bank charges and any excessive charges classified as penalties. Again, that's anything beyond what your overdraft plus they charge 20 pounds, as an example of a penalty being charged by the banks, it could be challenged. In the same way, being charged excessive fees, like 30 pounds for a bounced cheque when this didn't cost the bank something or imposing huge daily fines with interest if you go into overdraft, are also examples of these penalties and you can also reclaim bank charges which are unjust.
To figure out the amount that you could have when reclaim bank charges you could go back into your records and add up any kind of charges that you know are excessive because they are penalties instead of actual costs incurred by the bank as a result of your overdraft.
Oftentimes, banks will enjoyably return the money for illegal bank charges if you simply ask for them. This will avoid any need for legal actions. There are usually letter templates available on the internet for these forms of letters and it is useful if you download one rather than looking to write on your own. Keep copies of the correspondence and call up a few days later to see if it's been received and if you can reclaim bank charges which you requested, noting whom you spoke to, and the date and time you'd the conversation.
Send out the letter to your local branch and not the head office, simply because this will make sure that your case is heard in the area. Wait for two weeks for a reply and see what occurs. If the bank states it is going to react later on, be sure to stay on top of it and write and call back after fourteen days.
Author Resource:
Nancy Williamsspecialises in Reclaim bank charges and other financial products for UK based business www.bankcharges.com . She also covers unfair loan charges and the financial claims niche generally, as well as writing articles on personal finance, house sales, repossession and business finance.
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