| Unauthorised overdraft fees. These are
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| | Are Unauthorised Overdraft Fees Legal?
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| three words that worry every bank
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| | There is some question as to the legality
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| customer. An unauthorised overdraft fee
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| | of unauthorised overdraft charges.
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| is the fee charged by a bank when
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| | Penalty clauses (such as unauthorised
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| customers go over their overdraft limit.
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| | overdraft charges) are illegal under
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| These fees can be very steep, with some
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| | breach of contract law. However, banks do
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| banks charging high premiums for
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| | have the right to claim damages from
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| customers who exceed an agreed overdraft
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| | customers who breach their contract with
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| limit by as little as a few pence. A
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| | the bank. To avoid going to court every
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| recent consumer report suggests that bank
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| | time, most banks write these charges into
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| customers paid more than £4 billion
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| | the contract. They are then able to raise
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| pounds in unauthorised overdraft fees in
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| | those charges at regular intervals.
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| 2004.
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| | The banks see the unauthorised overdraft
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| Scale Of Overdraft Fees
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| | fee as a fee for services rather than a
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| The BBC have reported that the seven
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| | penalty. This could alter the legal
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| major banks charge unauthorised overdraft
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| | position.
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| fees of £25 to £38 pounds. Interest
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| | In many cases, it is the people who can
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| rates on the unauthorised amount can also
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| | least afford it who suffer these
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| be high. While some banks charge under 8%
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| | overdraft charges. This can become a
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| interest, others have interest rates that
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| | cycle, with some people having to pay
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| hover around the 30% level.
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| | unauthorised overdraft fees month after
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| The banking industry has been slated for
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| | month.
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| this practice by customers who feel they
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| | Help With Your Banking Rights
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| have been treated unfairly. The Office
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| | Consumers who want to find out more about
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| For Fair Trading has also criticised
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| | their banking rights should check
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| banks for overcharging customers for
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| | information from the Bank Action Group, a
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| unauthorised overdrafts. Late payment
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| | self-help organisation for banking
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| fees for credit cards have also been
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| | customers. This organisation can guide
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| criticised. The OFT suggests that late
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| | consumers through the lengthy process of
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| payment fees for credit cards should be
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| | recovering unauthorised overdraft fees
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| no more than £12 and should only cover
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| | from their bank.
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| the administration fee.
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| | Many organisations say that the banks
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| Getting A Refund
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| | should make it easier for consumers to
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| Consumers who feel they have been
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| | see what charges might be applied to
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| overcharged by their banks may be able to
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| | their bank accounts. Until they do,
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| receive a refund if they go through a
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| | consumers should read the fine print as
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| time consuming process.
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| | the terms and conditions of each bank
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| First of all, consumers can use the Data
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| | account contain information about charge
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| Protection Act to request details of all
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| | that might apply. Finally, when banks
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| charges on their account over the past
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| | send variations of terms, it is useful to
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| six years. Next, they need to inform the
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| | read these to see what new conditions
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| bank that they intend to sue in County
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| | might apply.
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| Court to get this money refunded.
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