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Customers winning back bank charges

Banks are increasingly being forced to refund customers over excessive bank charges.

The BBC has learnt that around 150 people a week are receiving refunds from their bank after complaining to the Financial Ombudsman Service (FOS).

Consumers are increasingly realising that the FOS is an effective route for redress, with the ombudsman receiving an average of just ten appeals a week this time last year.

Making a complaint involves filling out a four page form and is free for the customer. If filed correctly the bank is charged £360.

The FOS' findings are binding for banks and so far it has tended to rule that any charge of £12 is unfair- forcing banks to pay back the difference.

Consumer watchdogs have long complained that bank charges are excessive and can unfairly mount up for customers.

For example, many banks charge account holders if a direct debit leaves an account with insufficient funds and then charge them again for exceeding their overdraft limit.

The FOS reports that complaints about excessive bank charges now account for more than half the initial inquiries it receives.

Click here to see how much you could borrow with Lombard Direct.

12/01/2007 15:31:06

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