Reclaim bank charges

This is the judicial response to the flood of bank charges claims which are currently hiting the courts and for which I am very pleased to say, The Consumer Action Group is mainly responsible.

We believe that the courts are trying to get a test case heard so that the issue will be properly aired and settled once and for all.

This is excellent news for all bank customers. It is very bad news for the banks because it could mean that the days of unfair bank charges will eventually be ending.

A transfer to the mercantile court has the following effects:-
Your claim will be allocated to the multitrack regardless of its value. I know of cases for as little as Ј700 with no particular complicating factors which are now being multitracked.

There is a costs risk if you lose. However, in our view this risk is minimal.
Firstly you are most unlikely to lose. It is evident that the banks are operating an unlawful regime of penalties.
Secondly because the cases are being transferred of the court's own initiative and they are very clearly small claims track cases, it would be very unlikely that the judge would award costs against an ordinary person merely trying to recover their charges. the courts are not heartless. Look at Stephen Hone's ambitious but doomed attempt to sue 8 banks at one go. The court refused to order Ј117,000 costs against him even though he had forced the matter onto the multi-track
Thirdly, although the courts desparately want to try a test case, the multitrack will mean that the banks will be obliged to make standard disclosure and this means dislcosing all of the evidence of their penalty charges regimes even if the information is damaging to them.
Snowflakes might have a better chance in Hell
We take the view that the threat of standard discloure will persuade the banks to settle even more rapidly than they are doing at the moment.

However there is a risk and it has all to be tested.

If your case is transferred to the Mercantile Court, we suggest that you take the following action:-

Write a letter to the transferring court and to the Mercantile court explaining that you are acting in person, that you do not have a lot of money but you believe in the justice of your case. Explain to the court that you do consider that their action forces you to take the burden which should properly be borne by the OFT who have the power and the resource to bring the necessary test case but who refuse to do so.

Write to the OFT and complain that you have accepted their report, that you are claiming your bank charges and that you have now been transferred to the Mercantile Court where you have to bear the stress and the risk when it is in fact their responsibility to deal with the banks themselves.
Complain about your bank's penaty charge regime as being contrary to UTCCR 1999 and require them to investigate the complaint.

Write a similar letter to the FSA

Write a letter to your MP expressing anger that because of the failure by the OFT to carry out its proper function, you and many others are having to bear the burden of being the public guinea pig in a test case which will cause you stress and may carry a risk of fincancial loss. Do not think that these letters will be too much trouble or ineffectual for you. They will be very useful. There is a crisis brewing and now is the time to write.

Even if you are not affected by a transfer, if you feel like writing these letters then you should do so and express anger that others are being faced with these difficulties as a result of OFT inaction.

Please post what you have done in the new Mercantile Court forum