Does claiming unfair bank charges apply to business accounts

As the heading can I ask for my money back.

Ken

Reply to
Ken
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What are you saying is unfair about the charges?

Rob Graham

Reply to
robgraham

That my average credit balance has been around 20,000 and despite this they have started applying charges. The last Business Manager said with the type of average credit balances I had he had no intention of making charges. The guy who took over doesn't seem to accept that informal agreement. Ken

Reply to
Ken

But specifically, what is he charging you for? Is it a standard monthly fee, or a per cheque fee or an unauthorised O/D fee? Are the charges really unfair or did you just have a better relationship with the previous manager and got away with more?

Rob

Reply to
robgraham

so take your business elsewhere

tim

Reply to
tim.....

Move bank.

Give him one chance to withdraw them.

BOS is free if you keep a balance of 5k a month. Other business banking is free for introductory periods too.

Reply to
mogga

Monthly fixed charge + charge per item debits, standing orders, cheques, etc. No Over Draft ever on the account as balance never less than 13,000. Account open for ten years, with no charges as the past managers waived then in view of the credit balance I kept.

Reply to
Ken

They have caught me over a very bad period as I have had a number of very serious health issues and sorting out banking charges has paled into insignificance compared with my health. But now strong enough to take on the matter - I hope! Ken

Reply to
Ken

I am sorting out the facts and will tackle the guy next week. Ken

Reply to
Ken

"mogga" wrote

So how much interest do you then lose on that 5K all the time? Around 15 - 25 per month? Isn't that just like paying a monthly fee?!

Reply to
Tim

I totally agree with you and my accountant has moaned at me but when you are so ill you can only work part days your life is taken over by keeping your business going and covering over your health issues with your customers. Ken

Reply to
Ken

Without knowing precisely what the charges are for each item, I suspect that none of them can be called 'unfair'. That's not to say that you are happy with them, particularly given your changed relationship with the new manager, but to suggest that you could claim for them to be refunded I think is unlikely. As others have said, change the bank.

Rob

Reply to
robgraham

Agreed. By the sound of it, the charges are not "penalty" charges of any kind, but ordinary maintenance charges which this bank, like many others, are in the habit of applying to business accounts. From that point of view it seems clear they cannot be described as unfair in the same way which might stand up in court in the case of penalty charges.

Nevertheless the charges are patently unfair because the bank have unilaterally and apparently without good cause chosen to overturn a long standing arrangement to waive fees. The fact that the change coincided with a staff change is really neither here nor there, we may presume that there has been no change in the OP's pattern of use (such as reducing average balance or increasing frequency or nature of transactions), and that there was therefore no business reason for the waiver to be withdrawn.

In effect this pre-existing waiver of charges arrangement, which has been operated not only by *the* previous manager but by "past managers" (note plural) may be deemed -after all this time- to have become an implied term of the contract under which the bank is supplying the OP with banking services. I would imagine there is a fair chance the OP might win in court if he sues for breach of contract *instead of* going for the unfairness angle.

But it should not need to come to that. He should approach the new manager's boss and point out that this new guy is in need of a stern talking-to. After all, a customer may be happy to pay bank charges if he gets a reasonable rate of interest on credit balances, or alternatively to earn no interest and pay no fees, but to expect him to pay charges *and* forego interest is just not on.

The OP may view changing banks as unnecessary hassle, and may be happy with his existing bank in every other way. If so, he will want to give the bank one last chance to shape up, failing which he sould sue, whether or not he changes bank, a decision he may want to postpone until the outcome of the court case. This will at least give the bank some hassle too. Even if he doesn't win, it'll be a Small Claims fee well spent, and then he should move.

Reply to
Ronald Raygun

Thank you for such an in depth and extremely helpful reply. Ken

Reply to
Ken

He has said he keeps an average credit balance of 20k and has fees taken out.

The only fees I think I've spotted are a fee per cheque so if you write no cheques you get no charges.

Reply to
mogga

Per month I have no more than 20 DD, SO, ATM, pay ins or cheques. That's why I feel hard done by.

Ken

Reply to
Ken

As per the heading an update in that I have a full refund.

Phew!!

Ken

Reply to
Ken

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