FOS can help with unfair bank charges

Bank customers who have been put off trying to reclaim unfair bank charges should not be put off by recent court cases which have gone in favour of the banks claims the Financial Ombudsman Service (FOS).

Court cases require the claimant to supply more information and making a complaint to the FOS is a simpler process.

Complaining to the FOS is free and, while a court judgement will get in the way of appealing to the ombudsman, an unsuccessful complaint can be followed up by taking the case to court.

A Birmingham court’s decision to find in favour of Lloyds TSB when Kevin Berwick attempted to reclaim bank charges has been used by branch banks to try to put customers off launching their own cases.

But David Cresswell, of the FOS, told the Daily Mail: "We are seeing letters from banks suggesting the Birmingham case is definitive. This is usually happening at local branch level. Often when we raise it at a senior level, head office agrees that the letters are wrong and stop any more going out."

The FOS is getting double the number of weekly complaints it was getting a week, most of which are accompanied with a list of charges, though Mr Creswell says they needn’t be.

However, a complaint must be lodged with the financial provider before referring the case to the FOS.