Banking on it
a possible job sent to me this morning. It was to do
with creating content for a price comparision website.
is part and parcel of the reaction to the recession here
and elsewhere as well. People are trying to find
different sources of cash, trying to find the cheapest
ways of doing things and trying to retrieve money from
other people and organisations.
local news this week, has been a company called
Financial Redress. This is a company that enables people
to get back money that are owed by the banks and credit
card companies. I suppose that might sound a little
strange but the money in question is credit card charges
A huge trend
has become a huge trend. The law usually states that the
bank must charge for its services at a reasonable rate
that the bank itself sets and that it must place this
information in the terms and conditions.
would seem to be pretty solid but legally, a customer
has the right to claim back the charges and fees if they
are too high and can be declared unreasonably so. It
generally costs a couple of dollars for informing
someone about a late fee on a payment and so on but
quite often banks can charge anywhere from $10 to $50
for such fees. This is deemed to be too high so what
Financial Redress does is fill in the claims for upto
six years of banking charges and apply for the money to
be returned to the claimant on the claimantís behalf.
taken off. The business is doing so well that in order
to service all the claims they have currently received,
they have temporarily decided not to take any new
claims. This is not the first incidence of this nature.
In the U.K., the claims procedure has been temporarily
halted until the legality of claims can all be checked
thoroughly. There have been 750,000 people who have gone
through the process and have had successful claims
already and currently there are over a 100,000 people in
the queue waiting for the process to restart so that
they can get their cash back.
donít need a company to do it for you, it is possible to
do it yourself, but hiring a law firm specialising in it
does take out the hassle of hiring lawyers. This can be
good because essentially the process does mean ending up
in court for a hearing, where the judge has to decide
whether the claim is valid or not.
is, the banks do have to pay. Clearly this will have an
impact on the way banks start to do business in the
future. There is a worry that if they do cut down their
charges to comply with fair trade rulings that they will
then insert those charges elsewhere. Credit cards may
cut down their charges but then omit the 0% interest.
Fear and panic
with the fear and panic going around at the moment
regarding the current economic climate, most people are
happy to get a few $1000ís back in bank fee
reimbursement to pay their weekly rent and bills for the
next couple of months.
rather ironic that banks were created to keep money safe
and available with a slight fee to pay for the cost of
doing so. You got money from the bank because that was
where you kept it. Banking nowadays is a different
kettle of fish. Now you get money from the bank because
it is yours and they arenít giving it to you.
might be worthwhile having a chat with your lawyer about
claiming though you might want to make sure that you
have several years of account statements to adequately
track down all the charges and how much they cost. Go
get any money that is yours from the bank ó thatís what
it is there for.