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Bank charges - are RBS & NatWest jumping before they are pushed?
Page last updated Friday, 20 November 2009
RBS & NatWest are to cut bank charges for their 12.5 million current account holders with effect from 1 October 2009, but are they jumping before they are pushed and is it enough?
The bank announced that charges for a bounced cheque will be cut from £38 to £5, which will make it the lowest in the industry, while fees for exceeding an overdraft limit will be halved to £15.
The monthly maintenance fee of £28 for customers who exceed their overdraft limit will be reduced £20.
Debtwizard comment
According to the Office of Fair Trading (OFT), the major
Some experts will argue that £5 is still a profit making charge for the banks when generally the true cost is seen to be around £2. Also the £15 fee for the overdraft is still in my view way too high and should at least be similar to the new £5 fee for bounced cheques. I expect the other banks to follow suit as this raises the question, 'have the banks been given the nod that they have lost the appeal and that RBS, being the first as it is 73% owned by the tax payer, wishes to be seen to be ahead of the pack in reducing the fees.
What ever the reason this is good news for the consumer but RBS still needs to do more to help those that have been caught up in the nightmare of charges from which some just cannot recover.
I am thinking of entering a claim for bank charges, how far can I go back to?
It is arguable that UK consumers can add the period of the Financial Service Authority (FSA) waiver on all Court claims which commenced July 2007 to their already six year claim period.
So in theory you would add the additional period after July 2007 to when the banks pay out to your claim.
For example, if this is not settled until say July 2010 then you would add three more years due to the FSA ruling and therefore claim for nine years in UK and eight years in Scotland, if appropriate.
The standard rule is that you can claim back six years, yet the FSA said the clock stopped when the hold on reclaiming started in July 2007, and this is six years before that. Although this is a ruling from the FSA it does not have backing from the Courts, so it may be worthwhile claiming back as far as July 2001 and see what happens.
This applies whether you’re in England and Wales: in Scotland it is five years but it is worth considering going for six as well if you’re going to use the Ombudsman, where there’s no time limit, and not the courts.
Reclaiming Personal Bank Charges Tool
After reading this article take a look at the 'Reclaiming Charges Tool'. This tool will walk you through the steps needed to claim bank charges back.
Does this affect credit card charges?
No, this is completely different.
If you have already paid credit card charges then you are likely to have a claim for compensation going back as far as six years in the UK, five years and a maximun £750 if you reside in Scotland and £2,000 if you reside in Northern Ireland.
We have questions and answers plus template letters here
Our much acclaimed 'Reclaiming Credit Card Charges Tool' helps you add up your charges and creates a personalized letter to print out and send to your credit card issuer.
Visit our 'Credit Card Charges Tool' here
Bank charges update
We post regular updates here, bank charges latest updates, alternatively just visit our home page and see the link.
Hugh (Guest) Monday, 07 December 2009
I'm wondering whether you can direct me to a website that shows the overdraft charges of each bank for both arranged and non-arranged overdrafts?
Debtwizard Monday, 16 November 2009
Hi Grant
I cover how to claim 'financial hardship' and what to do if the bank does nothing.
See this link http://www.debtwizard.com/debt...l-hardship
If the bank fails to respond within 8 weeks then you will need to contact the Financial Ombudsman Service, (FOS). All details are on the above link.
Another link you may wish to look at is this one about me having a go at the FOS for what I call 'pussyfooting' around on hardship claims. http://www.debtwizard.com/news...-the-banks
The FOS should be helpful, more so after they had to write to the banks regarding this. All in the article.
Trust this helps.
Please let me know how you get on if you have time.
Best wishes
Debtwizard
grant (Guest) Monday, 16 November 2009
I to have been chasing the halifax, they didn't even send me my statements until 4 months after i requested them. They have admitted im in financial hardship but nothing
andrew Gladen (Guest) Tuesday, 03 November 2009
re Nat west:- It would appear as though the public letter issued to the general public via the newspapers by the nat west chairman is not telling the truth.
We are currently trying to recover from nat west £4035 charges levied since sept 2008 and this includes £735 charged during October and £595 charged during september. The result of these charges are we are overdrawn our payments are not being honoured which means we will be faced with another huge penalty charges on the 30th November.
Included within these two figures are charges for standing orders not paid which were set up in error by the bank. So not only do they levy unfair or illegal charges but they think it appropriate to make mistakes and then charge their customers for these errors.
I have been told this letter and reduction in charges does not apply to us because we are a business customer. Nowhere do I recall the chairman mentioning in his public letter that we and other business account customers were excluded.
If the chairman has committed errors and ommissions in his statement should he resign?
If he has misled us and the bank is now state owned would this count as misconduct in public office which is an arrestable offence? I believe the following to be a fair transcript of his open letter
Here are the details of the cuts:
Rejected transaction fee reduced to £5 from £38 (maximum £50 per month, reduced from £114 per day, which could have meant thousands each month).
Accepted transactions which take you overdrawn without permission: fee reduced to £15 from £30 (maximum £90 per month)
Accepted transactions which take you overdrawn without permission using a cheque guarantee card: fee reduced to £15 from £35 (maximum £90 per month, reduced from £105 per day)
Monthly fee while in an unauthorised overdraft reduced to £20 from £28
Unarranged borrowing interest rate reduced to 19.24% from 29.69%.
No where can I see Business customers excluded.
Any comments out there.
It seems to me over the years the banks have forgotten what relationship banking is about and they seem to take more satisfaction in squeezing the consumer and small business customers rather than helping them to grow and create wealth.
Mike Friday, 23 October 2009
Hi John
Another update for you, please see my news item dated Friday 23 Oct 2009, as the FOS has written to the banks 'asking' them to start treating consumers fairly.
I have had a go at the FOS for 'pussyfooting around'.
The article and letter can be found here;
(copy and paste into browser or go to home page)
http://www.debtwizard.com/news/banks-and-regulation/389-the-fos-needs-to-stop-pussyfooting-round-the-banks
I cannot believe the ignorance of our UK banks.
Trust this helps.
Best wishes
Debtwizard
Mike Tuesday, 20 October 2009
John
Go to the home page and see the link for 'Reclaiming charges; near the bottom right, once there you will find another link for 'Financial Hardship'. This should give you all the answers and guidance you need.
We expect to hear the court result this month , of which there is no right of appeal. Should the OFT win then they will have to start the second round on assessing the
amount of what bank charges should be set at.
I will update all members in my weekly email and naturally on this website.
Any problems come back to me.
Best wishes
Mike Thomas
Mike Tuesday, 20 October 2009
Joanne
I have spoken with you and your partner before, can you call me and I will see what I can do. If you have lost the number then call my support team on 0845 225 0025 and give them your contact number.
Best wishes
Mike Thomas
John (Guest) Tuesday, 20 October 2009
I have an exsisting claim for bank charges. What is the latest on when a decision will be made on claims? And my circumstances have now changed and I am incurring some financial difficulties, can my claim be processed as a harpship case now although it wasn't at the time?
Joanne J (Guest) Friday, 16 October 2009
Im currently exiting an IVA and am looking to remortgage in order to move home. Is this somthing that i am going to, any suggestions as to a company to contact. Any advice would be appreciated..
Thanks
Mike Thursday, 08 October 2009
Hi Joseph,
The court result is imminent, so hold off for a week or so, see my link on the home page on 'Bank charges latest news' or click on this link http://www.debtwizard.com/debt...ng-charges
Mike
joseph hickman (Guest) Wednesday, 07 October 2009
hi mike i have sent all the letters to my bank requesting my bank chargers back i;ve heard northing from them what do i do next
Mike Monday, 28 September 2009
Hi Chris
Why don't you enter a claim for your bank charges un the 'financial hardship rules', I cover how to do this and who to contact if the bank rejects your claim, see 'reclaiming charges' on the home page, near the bottom right, open the link and then select 'financial hardship rules'.
Trust this helps.
Best wishes and good luck, Debtwizard.
chris (Guest) Tuesday, 22 September 2009
i have been chasing my tail over charges for 2 years now,telling the halifax i am in difficulty,no joy,i am now unemployed,no money whatsoever,no food money,no nothing money,zilch nada diddly squat,will the banks refund my 6k they owe me to get me on my feet again,no they put up the wall each time i speak to them,no no no is all i get,the halifax are criminal,all banks doing this are criminal,whats next for me,no home sleeping in doorways i have one week to solve my problems or its curtains,i hate banks
