Are penalty charges bank robbery?

Banks are making billions of pounds each year from penalty charges. But now the legality of these charges - which cost their customers an average of £30 a time - is being called into question and thousands of customers want their money back.
We have investigated why some campaigners claim penalty charges are illegal and what the banks and their regulators are doing about it.

Last year the top six High Street banks in the UK made an estimated £4.5bn from penalty charges. These are charges that are incurred for unauthorized overdrafts, bounced cheques and clearing Direct Debits when there are insufficient funds in the account.
Full Article.

Have Your Say: Beating the charges

Increasing numbers of consumers who think bank charges are unfair and illegal are taking their bank or building society to court to recover fees they have paid in the past.

Although the banks say their charges are both legal and reasonable, in many cases they are paying-out to customers rather than defending themselves in court.
Full Article.

Bank bars overdraft charge rebels

Alliance & Leicester bank has decided to close the current accounts of people who have sued it for imposing supposedly unfair bank charges.

Some customers who had got their overdraft penalty charges refunded have been told their accounts will be closed in 30 days.

In recent months, the number of people suing their current account providers regarding overdraft fees has increased.
Full Article.

Banks fight back on court action

More banks are fighting back against the growing number of consumers who are using the courts to force them to repay penalties.

The charges are made when customers go overdrawn or have too little in their accounts to meet payments but the Office of Fair Trading has said consumer law only allows the banks to recover their actual costs not impose a penalty as well.

Lawyers and consumer groups claim penalty charges of £30 or more break this law and some customers have got back thousands of pounds by threatening court action.
Full Article

Bank customer gets £2,000 refund

A Belfast taxi driver who threatened to take his bank to court over unfair charges has been given a £2,000 refund.

Eamonn McGuckin incurred the charges with the Halifax after he went into the red without permission over a three year period.

Mr McGuckin thought the penalties were excessive and asked the Consumer Council and BBC Radio Ulster's consumer programme, On Your Behalf, for help.

It is thought to be the largest refund to a bank customer in Northern Ireland.
Full Article

Banks to cut credit card charges

Three of the country's biggest banks are to cut their credit card penalty charges following regulators' demands.

But one of them, Barclays, is also increasing its interest rate for some card holders.

Barclay, Lloyds TSB and HSBC will cut their penalty charges by nearly half from £20 to £12 in the next two months.
Full Article