h2g2 The Hitchhiker's Guide to the Galaxy: Earth Edition

Brilliant

I heard a good comparison today. Pawn shops hang balls outside. Banks hang you up by them.

I can't tell you the pleasure I get from using my credit card these days. Not only do I pay off my balance every month, so I don't incur any charges, but also the company pledge a small percentage donation to Dogs Trust whenever I use it. I use it for everything I possibly can. And I get interest monthly on my bank account, so the equivalent of what I put on my card earns me extra interest.

I shudder to think what I've paid in bank and credit card charges over the years. I just love being in the position to cost them money for a change!

Deb

The courts have actually declared excessive bank charges to be illegal.

This site give a fair ammount of detail about why and how to claim your money back - you can gop back 6 years.

http://www.consumeractiongroup.co.uk/

However despite this some banks continue with £30 charges, the courts have said anything over £12 is excessive and illegal.

If you start down this path, you will win, however there is a drawback, some banks will then close your account, so open an account somewhere else before you start.

The BBC summary that supported the Money Programme is nice and clear about what to do, with a step by step guide. It also has all the legally approved templates for the letters you can write.

The slight drawback is that if the bank refuses to pay at first, or you get no reply after 14 days and you need to go further, it costs £250 to file the claim in the Small Claims Court. However, as far as they know no bank has ever defended its penalty charges at this stage. Yet.

"How to claim back penalty charges " http://news.bbc.co.uk/1/hi/business/6170209.stm

Stephen Hone is the man to thank. He discovered the loophole in the law and has put the information in the public domain for free. His site is here: http://www.penaltycharges.co.uk/main_bank_charges.php