This post was published 5 years 4 months 25 days ago. Therefore, it may well be out of date. Do not reply on the contents of this post being accurate. If, like me, you’ve ever had a charge from your bank (exceeding your overdraft, returned DD, bounced cheque, etc.) you’ll welcome this news. Actually, it’s not new but I’ve been holding off posting this until I’d successfully claimed my charges back from my banks (which, has now happened).
OK, the headlines. Banks have been charging extortionate amounts for such charges. My banks have previously charged up to £30 when such an occurrence took place. £30 for a system (with zero human interaction) to send me a letter advising that I’ve gone beyond my overdraft limit is a joke (but not that funny). What does it actually cost the bank to process this event? I’d say not very much all — I’d bet it can probably be measured in pence.
So, when I watched an episode of Tonight with Trevor McDonald about this very subject I was really pleased to learn that such charges have been found to be unlawful.
Recently (2000 – 2004), I stopped working to take a four-year degree as a self-funded mature student. During these years I had no (or very little) income. Having no income it was difficult to manage my finances as I did when I was working and earning. There were numerous occasions during this period when I exceeded my overdrive limit or had a DD returned. Often these events resulted in additional charges (for example, a returned DD caused a charge which pushed me over my limit). These charges (£30 a time) amounted to circa £1200 over the four years I was studying.
Thankfully, since graduating and commencing my employment with IBM these occurrences have stopped, however, I’d spent circa £1200 in charges while I was a student.
It turns out that you can now go back up to six years and claim these charges back from your bank. So I did.
You’ll find out all you need to know about this at the Consumer Action Group. If you’ve ever had such a charge (no matter how big or small) I really recommend you check out the site and fire off letters to your bank.
I did and I’ve now received all my charges back over this period.
Nice bonus.