Bank Withdrawal
How great it was to read this morning of the Norfolk businessman who has successfully reclaimed - and been repaid - almost thirty six thousand pounds from the National Westminster Bank for
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what he considered to be illegal charges made to his account for being overdrawn. Like most of us at one time or another, he had suffered cashflow problems while waiting for his customer's cheques to clear their account into his. As we know, there is a delay of some three days between the two procedures completing, during which the banks benefit from the interest gained on the amount. Each time he was overdrawn during this period, he was charged a thirty five pound fee by the bank, which on some months amounted to three thousand pounds per month. He finally had enough of what he considered to be gross overcharging and using advice gained from the website of the Consumer Action Group he sent one of their standard letters off to the bank in January of this year which was subsequently ignored. So, he then started a legal action using the government's Money Claim Online Service and a case conference had been scheduled for May 11th.

Last Friday, a cheque for the full amount arrived with a letter from the bank's solicitors, denying they had been guilty of overcharging but were settling in full, because the costs of a court case would be more than the amount claimed

Campaigners however, say that if the banks did turn up to face a court hearing they would be forced to admit the true cost of a bounced cheque was more like two pounds than the thirty they have been charging their customers. Most of the main banks have recently taken to refunding similar claims, some relating to charges dating back several years, rather than having to admit their real costs in court.

Surprised? No of course not. For years the banks have been treating customers like they were lucky to be able to deposit funds at their facility rather than the other way round. The charges have been both unjust and unreasonable.

It is always good to see a bully getting a black eye!!

Another useful resource is Money Saving Expert
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