Free Money from Your Bank

[TheMightyGreg]

You might have already seen something about this, but I've just come across it and thought I'd share the potential wealth.

Basically it turns out that every time your bank has charged you for bouncing a cheque or going over your overdraught limit they've been breaking some random law, so thousands of people have been writing in complaint to their banks and being reimbursed for all these charges over the last 6 years.

See the link for more details, letter templates and other useful shit. Has anyone succesfully done this? I sent mine the other day so I'll let you know if anything comes of it.

http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1141050760,24632

[AndyH]

Re: Skint? Read on...

Def worth a bash. Reckon those bastards must owe me at least a few hundred..

[threehills]

Re: Free Money from Your Bank

Is this just for british banks? or would it apply to the U.S. as well?

[TheMightyGreg]

Re: Free Money from Your Bank

^^^ Not sure,,, the article refers to a British law, but there might be something similar for the US. Worth a bit of digging around though, recon they must owe me a few hundred at least

[toasty]

Re: Free Money from Your Bank

Is this just for british banks? or would it apply to the U.S. as well?

The law underlying the guy's rationale is basically the same in the US, i.e., that you can't charge penalties that grossly exceed the actual costs incurred for what is essentially a claim for breach of contract. Although I think it might actually work, I doubt it is for the reasons the guy on the web site thinks, because your agreement with your bank probably includes what are known as "liquidated damages" clauses where you agree what amount, specifically, those actual costs are likely to be.

It's been a long time since I've had occasion to deal with the law on liquidated damages clauses so I can't be sure on this, but I'm fairly certain that they carry with them a rebuttable presumption that the amount charged is fair. You could still challenge it on the basis that it is a contract of adhesion or otherwise, but you're starting from the proposition that the amount charged is fair.

Bottom line is that if you really push the issue, your bank might reverse the charge, but it will be because: (1) they have an incentive to keep you as a customer, and (2) it's not worth paying a lawyer to defend a $25 claim, -- not because you have them dead to rights on the law.

As I think about it, I'm fairly certain that there was a class action about this a while back here in the states. I'll see if I can figure out what happened with it.

[TheMightyGreg]

Re: Free Money from Your Bank

Just found out a friend of a friend got given £500 as a 'good will' gesture without them even checking the extent of his charges. Not the most reliable source I know but certainly encouraging.