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Bank's win in court - you can still claim your bank charges
With claims believed to be around the £500,000 mark, there is still some hope for those who are facing financial hardship. There is no material change in the bank charges or the court view that they are legal but it does impact on how your bank deals with you and the outstanding sum of any debt or loan.
The key for any future appeal is whether you have been “treated fairly” by your bank.
The body who are responsible for the final decision on dispute cases are reporting a 50% success rate for customers who have made an appeal on the grounds of financial hardship.
Some of the fees being appealed are for cheques or payments bouncing and running over the approved level of overdraft. Also in question are the fees charged on a day-by-day basis for being in breach of the authorised overdraft threshold. Some charge as much as thirty five pounds each time so any slip ups can be expensive.
FOS remarked "Genuine financial hardship is where the consumer's income is insufficient to cover reasonable living expenses and meet financial commitments."
Financial hardship is a far broader and deeper category than thought of by most. You could be classed in this group if you’re not able to meet basic living requirements such as paying your rent or mortgage, council tax, food, gas or electricity. It may also be the case that a view is taken if you have returned to education, have had a large reduction in salary through change of job or are currently out of work.
The first point of contact is in writing to your bank to make your feelings and circumstances know. If that does not deliver the result then a letter to the ombudsman would be next. If you’re still determined and feel you have been mistreated you can always take them to court. Contact Citizen's Advice on their website at citizensadvice.org.uk and ask for some free advice on the best way forward.