Banks Are Breaking The Law

[Snowflake]

Banks' £30 Penalty On £2.50 Service

Banks are charging customers £30 in penalties for a service that costs them just £2.50, a new study has revealed.

BBC2's The Money Programme looked into allegations that financial institutions were overcharging customers who default on payments.

It found that it costs banks no more than £4.50 when a customer's cheque bounces and a maximum of £2.50 to deal with unauthorised overdrafts.

But despite the low cost incurred by banks, customers received penalty charges of around £30 in relation to unauthorised credit.


The issue has led to calls for regulators to step in, amid allegations that banks are breaking the law by charging more in penalties than it costs to process defaults.

Stephen Hone, campaigner and founder of penaltycharges.co.uk, told the programme: "It clearly shows the banks have been scamming people for years on these charges and they are totally unlawful, so it shows people that they can go back and claim their money back."

In recent months, disgruntled consumers have been prepared to take their banks to the small claims court to reclaim money taken from them in penalties.


Some 180,000 template letters threating banks with court action have been downloaded from MoneySavingExpert.com in just a month. But to date not one claim has gone to court, with banks eager to settle.

Barrister Kieron Beal of Matrix Chambers noted: "It is odd that they have not chosen to fight a case to date. It does suggest that perhaps they are finding it difficult to justify the charges that they impose upon their customers."

SubhanAllah, according to that my bank owes me a few bob! :D


:w:

[England]

Banks' £30 Penalty On £2.50 Service

Banks are charging customers £30 in penalties for a service that costs them just £2.50, a new study has revealed.

BBC2's The Money Programme looked into allegations that financial institutions were overcharging customers who default on payments.

It found that it costs banks no more than £4.50 when a customer's cheque bounces and a maximum of £2.50 to deal with unauthorised overdrafts.

But despite the low cost incurred by banks, customers received penalty charges of around £30 in relation to unauthorised credit.


The issue has led to calls for regulators to step in, amid allegations that banks are breaking the law by charging more in penalties than it costs to process defaults.

Stephen Hone, campaigner and founder of penaltycharges.co.uk, told the programme: "It clearly shows the banks have been scamming people for years on these charges and they are totally unlawful, so it shows people that they can go back and claim their money back."

In recent months, disgruntled consumers have been prepared to take their banks to the small claims court to reclaim money taken from them in penalties.


Some 180,000 template letters threating banks with court action have been downloaded from MoneySavingExpert.com in just a month. But to date not one claim has gone to court, with banks eager to settle.

Barrister Kieron Beal of Matrix Chambers noted: "It is odd that they have not chosen to fight a case to date. It does suggest that perhaps they are finding it difficult to justify the charges that they impose upon their customers."

SubhanAllah, according to that my bank owes me a few bob! :D


:w:

I heard this on Kilroy not so long ago. Over the 4 years I've been with HSBC they charged me over £1000 altogether. I went to www.consumeractiongroup.co.uk and it helped me to get all my money back. It was simple. It's a forum and you get a step-by-step guide. I got every last penny back plus interest on what they took from me. I was thrilled :D

[Snowflake]

Great! Did you need your old bank statements to prove you the charges? I remember being charged twice. Might have been more though. How can I find out?

[England]

Great! Did you need your old bank statements to prove you the charges? I remember being charged twice. Might have been more though. How can I find out?

You register to that forum and then download the appropriate file under the templates section. It's an excel file so you need to have microsoft excel. Then check your statements and fill in the fields of how much they took from and you and what date. You then get another file from the "templates" section which would be the letter and you just fill in the missing bits such as your name and print it off and post then just wait. Everyone will help you on that site. They've all done the same thing. Register to see the missing sections.

Good luck

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[England]

First go to the forum.
Then register.
Log in.
Go to the "FAQs :::::::::::::::::::::::::- PLEASE READ THESE FIRST!!! -:::::::::::::::::" thread.
Then go to "Step-By-Step Instructions"

Everything you need to know is there

Note: Your bank will then offer you a final settlement which will be lower than what they took off you. Don't take as it is YOUR money that they took. You're entitled to your full refund plus interest.

[MTAFFI]

i wonder if this holds up in USA too?!?!?

[Snowflake]

Thanks England... but I'm two minded. Might just leave it. :-\

[England]

Thanks England... but I'm two minded. Might just leave it. :-\

Don't leave it! It's not difficult. They have your money. If you're giving it away let me have some. Like I said I received £1085 and I was over the moon.

[Snowflake]

ummm... thing is I was suppose to cancel my internet subscription but sumthin always comes up.. that's why I'm thinkin of leaving it... how long does the whole process take?

[England]

ummm... thing is I was suppose to cancel my internet subscription but sumthin always comes up.. that's why I'm thinkin of leaving it... how long does the whole process take?

It depends on when you start. It took me 2 weeks until I actually received my money, I didn't stall.

[IbnAbdulHakim]

banks are also the reason the US pay illegal income tax :(

[England]

banks are also the reason the US pay illegal income tax :(

I'd have a look into whether this is the same in the US if I were you.

[Snowflake]

Ok England I'll give it a go. The problem is I've registered, received a confirmation email and (ID number) but I can't access the forum. It keeps saying access is restricted blah blah blah..

Btw, where do I type in the ID number.. cuz log in only requires user name and password?

[England]

Ok England I'll give it a go. The problem is I've registered, received a confirmation email and (ID number) but I can't access the forum. It keeps saying access is restricted blah blah blah..

Btw, where do I type in the ID number.. cuz log in only requires user name and password?

Log in using this;


user: muslimah_sis
password : 2325426

[Snowflake]

thank you that's very kind of you .. I'd tried again after a few hours and it worked :)