One of the most prominent "consumers fight back" stories of recent months has been over high street banks charging their customers excessive penalty fees, and a growing number of people taking them to court to recover those fees.
Since my personal bank account is mostly ignored and usually in quite some disarray, this story was of particular interest to me. I read through the guidance on moneysavingexpert.com, and on 2nd April I started the process of trying to claw back some of the money the bank has taken from me over the last six years. After all, understanding and help is what you need when building a small business, not raids on your account.
In May, after receiving the last 6 years' worth of statements from the bank and itemising my excess charges, I sent a demand for £1729 + interest to NatWest. Within a few days I got a letter back saying they'd received my request, and would respond in 90 days.
Yesterday I heard on the news that the Office of Fair Trading and the banks were going to court to decide whether the excess charges were legal or not, and my heart sank. If the courts ruled it was legal, I'd stand no chance of recovering the money.
This morning, a thick parcel hit my doormat, and when I opened it, I found hefty leaflets from my bank: "Personal Banking Terms and Conditions", "A guide to Personal Current Account fees and interest", and "Customer complaints". Uh-oh. Too timely. And then I read through the cover letter. The first page said:
We explain all of our terms and conditions including our fees and charges at account opening [...] we do not agree with the basis of your complaint [...] we believe that these charges are fair, reasonable and transparent.
At this point I was feeling pretty annoyed and depressed, but I persevered and started reading the second page:
However, [...] as a gesture of goodwill [...], in this instance we are prepared to offer the amount of £1729 paid direct to your account.
Hurrah! So it was definitely worth pursuing the bank, though it looks like I got through just in the nick of time.
Technorati Tags: finance, banks
Posted by savs at July 27, 2007 10:07 AMGreat news on the charge refund. I'm in the same position with Natwest. Can you please tell me what was the date on the letter you received today. Was it the 27th? if so im wondering if i may also be lucky enough to get a refund.
Posted by: andy at July 28, 2007 1:44 PM