Published in on Saturday, April 25 2009 by Ideal Debt Solutions
Until a couple of years ago, many people were finding themselves thousands of pounds richer after claiming back bank charges (imposed when customers go beyond an overdraft limit) which were deemed to be unlawful. This process was great news for those in debt, as claiming for up to six years’ worth of these charges often added up to a nice sum of money which could be used to help with a personal debt management plan.
Unfortunately, in the summer of 2007, this process was put on hold after an agreement between the Office of Fair Trading, the banks, who were unhappy at the amount being claimed back by customers, and the Financial Services Authority.
However, you may still be entitled to claim back bank charges. Financial experts have been appearing on national television shows this week in an attempt to publicise a rule that was included in the 2007 agreement. This rule states that individuals currently in financial hardship are still entitled to become involved in the process of claiming bank charges. The confusing issue perhaps lies in defining financial hardship adequately. There are certain criteria which need to be met in order to qualify under financial hardship and the bank will send you a questionnaire upon request, which will ensure that you fall into this category. Generally speaking, however, you will need to show that your income is not enough to cover your living expenses and financial commitments (provided, of course, that they are reasonable).
A professional company familiar with providing personal debt advice will be able to help you with regards to understanding the criteria to qualify as living in financial hardship. Qualified professionals may also be able to help you with the claiming process itself.