'£1K a day' for bank reclaimers

http://news.bbc.co.uk/go/rss/-/1/hi/northern_ireland/6739241.stm

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About £1,000 in bank charges is being refunded each day to NI customers, the Consumer Council has claimed.

It says it has helped people claim back more than £100,000 in penalty charges.

Spokeswoman Alison Laird said consumers accepted they must pay a penalty for going overdrawn without permission but the "level is excessive".

An advice booklet on reclaiming charges has been released, and extra support is on offer, "as taking on the banks can be daunting for many", Ms Laird added.

"One young couple just about to get married - who face the financial pressures of paying for a wedding and getting on the property ladder - had £2,000 of charges imposed on their account.

"They have now got back their £2,000 after challenging their bank."

Penalty charges can be incurred for the following: unauthorised overdrafts, unpaid items such as cheques, direct debits or standing orders.

These are also known as returned or bounced items.

Charges too high

Last month, Northern Ireland's four main banks were told by the Competition Commission that charges paid by their customers were too high.

A two-year investigation focused on the four NI banks found charges were not clear and current account customers faced an unduly complex charging structure.

The commission demanded that the banks provide customers with clear explanations and annual summaries of charges. If the banks do not comply, they can be fined.

Since the inquiry began, the banks, which control 75% of the current account market, have introduced fee-free accounts, and there have been several new products launched in recent weeks.