NatWest seem to be claiming their fair share of bank charge reclaiming stick at the moment (see our previous post on the forthcoming court case) – the BBC reports that they have repaid over £35,000 in charges to a Norfolk business after an unnamed businessman chose to question the charges it had imposed.
Using standard letters from the website of the Consumer Action Group (CAG), he sent off a first demand in January this year for £24,000 plus £12,000 interest. With no response he then started a legal action using the government’s Money Claim Online service. A case conference had been scheduled for 11 May. But out of the blue a cheque arrived last Friday, in full settlement of the claim.
Typically of the bank, it is not admitting that its charges are unfair, yet it is justifying its decision not to go to court by saying that the court costs would be higher than repaying the charges. This, according to the CAG, is nonsense.
Campaigners claim that the banks have adopted this strategy because if they were ordered by a court to reveal just how much it actually costs to bounce a cheque, they would be forced to admit that it was in the region of £2, rather than the £25 to £30 unauthorised overdraft fee that is commonly charged.