Bank charges can still be reclaimed

The banks may have won the court battle on overdraft charges last November, but if youre someone with serious financial problems there may still be hope for reclaiming bank charges made on your overdraft.

Consumer website MoneySavingExpert.com claims that over half a million people in the UK in financial hardship could reclaim as much as £480 million from the banks.

Using the Financial Ombudsman Service to handle their bank complaints, thousands of people in financial difficulties have got money back - even since the November judgement.

Site founder Martin Lewis also suggested that there may be an alternative legal route to appeal against charges in the offing.

Under the Consumer Credit Act, he said, a bank must prove that its relationship with its customers is fair pointing to one court in Scotland which has begun to take note of that requirement in advising on template letters.

But leading debt solutions expert, EuroDebt, offers a word of warning. They say that consumers need to be mindful that while they are disputing a credit agreement any defaults will go on their credit record and this could make it harder for them to get new credit elsewhere.

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