“It really is a scandal. The UK banks only exist because they have been bailed out by British taxpayers, yet financial service companies are still ripping people off – I don’t think that’s putting it too strongly. It means that customers who slip into minor difficulties can see mountains of debts pile up. Legal action against the banks hasn’t worked, so we will legislate to end unfair bank charges on unauthorised overdrafts, bounced cheques, or failed direct debits.
Any charges really have to relate to what these mistakes actually cost the banks (I’d like a similar rule for transaction charges like credit cards to crack down on unscrupulous companies like Ryanair who seem to charge you just for breathing!). As for charges from the past, while it’s usually a very bad idea to pass retrospective legislation – I believe the banks have a moral obligation to pay them back. The idea that chief executives taking home millions of pounds a year can begrudge people struggling to get by a few hundred pounds simply beggars belief.”
In the meantime, we say, you can make a claim if you are suffering financial hardship. Ask for your free report.