Fool.co.uk comments on reclaiming unlawful bank charges

Ahead of the BBC’s programme on penalty charges, The Motley Fool actively supports customers reclaiming unlawful default charges from their banks, but also urges them to consider the long-term implications.

We consider the charges, which relate to fees when customers go overdrawn without prior arrangement, as unduly excessive and unnecessarily penal.

According to the Financial Ombudsman some firms, when faced with a complaint, first respond by saying the charges are justified. But if the customer presses the point they are offered a write-off of half of the charges. Additionally, if the customer issues court proceedings, as the Motley Fool encourages, the whole of the charges are written off.

David Kuo, Head of Personal Finance at www.fool.co.uk says: “Customers who have successfully reclaimed unlawful charges from their banks can feel proud of their victory that is often achieved through persistence and perseverance.

“But they should also revisit the steps that led to their bank accounts falling into the red in the first place to avoid making the same mistake again.

“A refund from your bank may make you feel good in the short term. But long-term gratification can only be achieved through proper financial education to address underlying issues, which is the cornerstone of The Motley Fool ethos.”