Unfair Bank Charges Can Cost More than Payday Loans and can you get a Refund on the Charges?

Sept. 21, 2011 - PRLog -- Like many, you may have been stung by excessive overdraft fees that are charged by banks for going into an unauthorised overdraft and with The Office of Fair Trading predicting that banks charge around £2.5 billion a year in fees are they unfair?

“Unfair bank overdraft charges are not uncommon and there are examples of people going overdrawn by as little as 8p and being charged an astounding £215,” said James Jones from Poor Credit Loans 4 You who specialise in helping people acquire poor credit loans.   http://www.poor-credit-loans-4-you.co.uk/poor-credit-loans-for-poor-credit-loan-poor-credit-rating-loans-with-poor-credit-loans.html

Lloyds TSB are one of the worst offenders when it comes to excessive overdraft fees for unauthorised overdrafts and recently have started advertising that their current account customers who manage to find themselves with an unauthorised overdraft will have until 3.30pm the same day to repay the overdraft and will not be charged any fees (A Grace Period), however, many other banks including Halifax, which is part of the Lloyds Banking Group offers until mid-night for the overdraft to be repaid.

Chris McBride from Which? Magazine stated: “It’s strange that Lloyds would promote a grace period that is worse than those offered by many of its rival's. Grace periods can help customers who switch money between accounts, but not everyone can do that. For those living on the breadline, grace periods are of little use. We still think overdraft charges are too high and are campaigning for the government to ban unfair charges.”

At the beginning of February 2010 it was reported that banks claimed to have made their charges fairer and more transparent, however people were still being charged up to £216.32 for a £150 overdraft over 10 days and at the time you could get a £150 pay day loan for £20.44.

“The numbers speak for themselves and people weren't happy, so on the 2nd December 2010, Lloyds TSB reduced their charges, and 70% of people paid less than half the amount they were originally charged,” said James Jones from Poor Credit Loans 4 You.   http://www.poor-credit-loans-4-you.co.uk/poor-credit-rati...

Despite these reductions many still feel that overdraft charges are unfair and the OFT seems to agree as it took seven high street banks and building societies to court in 2009 to establish whether it had the right to rule if their unauthorised overdraft charges were fair, however the OFT lost the case but several banks, including Barclays, Santander and the Bank of Scotland and Halifax said they would make changes to their charge structures.

“Many banks including Lloyds do offer some protection against overdrafts and Lloyds TSB on their classic account now offer an overdraft buffer service up to £10 and when this happens, they will text you to inform you that you have gone into the overdraft, so you can make corrections to your account if you can,” said James Jones from Poor Credit Loans 4 You.

If you feel you have been on the receiving end of unfair overdraft charges than there are actions you can take to try and reclaim some of the charges.

Even though the banks won in the Supreme Court battle you may still be able to reclaim the unfair charges.

If unfair bank charges are forcing you in to financial hardship you may contact the Financial Ombudsman Service and some reports suggest they may only help in cases where someone cannot provide a roof over their heads or put food on the table and you must be able to prove the financial hardship.

“You could receive help such as having the debts written off, debts frozen, a proportion of the debt written off, the debt restructured, a lower interest rate or some charges can be cancelled, but the success rate is extremely low,” said James Jones from Poor Credit Loans 4 You.

Poor Credit Loans 4 You helps out people who fear they have been blacklisted because of past poor credit history which could include CCJ’s and defaults, arrears, late credit card payments or repossession.

Poor Credit Loans 4 You holds a Consumer Credit Licence issued by the Office of Fair Trading.

Poor Credit Loans 4 You is also covered by the Financial Ombudsman.

Poor Credit Loans 4 You is also registered with the Information Commissioner’s Office for Data Protection.

For help, phone 0800 215 5860
Or:  http://www.poor-credit-loans-4-you.co.uk/poor-credit-rati...

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Notes for Editor:

Loans 4 You of London Ltd
Innovation Centre
Monks Brook
PO30 5WB
United Kingdom

Tel: Free Phone 0800 215 5860

Poor Credit Loans 4 You was formed in order to ensure people with poor credit had access to specialist help in securing the poor credit loans they need.

From its UK head office in Monks Brook, Loans 4 You operates across Britain, sourcing poor credit loans for people with poor credit.

Poor Credit Loans 4 You holds a Consumer Credit Licence issued by the Office of Fair Trading.

Poor Credit Loans 4 You is also covered by the Financial Ombudsman.

Poor Credit Loans 4 You is also registered with the Information Commissioner’s Office for Data Protection.

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Poor Credit Loans 4 You is a top UK specialist for Poor Credit Loans for people from all over the UK.

Its wealth of experience in the Poor Credit Loan industry means it gets the best deals for people seeking a poor credit loan.

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