Illegal Bank Charges a Bigger Problem than Most Believe
If the Office of Fair Trading’s objectives are realized, and the banks lose a test case, they will “forfeit this multi-billion pound source of illegal profit forever” if consumers start to challenge them in the courts.
Now, many consumers are frustrated by the bank’s refusal to make repayments, in some cases even when the courts side with consumers and demand a refund. According to some claims, this is the biggest illegal money grab in the UK.
Matthew Taylor, Speaking in a debate in parliament’s Westminster Hall, claims that the banks do not fight any refund cases, preventing a definitive ruling on whether the charges are illegal. If they did fight a case, and the charges were deemed illegal, they will loose almost £4.5 billion in charges annually.
Mr. Taylor said:
“Every time court action is threatened, the banks refuse to defend themselves. The only possible reason has been that they know they will lose.”
He claimed, in his speech, that Banks are “mugging their customers and the OFT and the government are letting them get away with it”.
Concluding he added: “These penalty charges are crippling people on very low income.
“I believe they are clearly illegal and if there was any doubt about it the banks would have the courage to fight a single case in the courts - which they do not.
“Meanwhile, frankly the OFT has been limp, the banks are dodging the courts and the government is turning a blind eye.”
The OFT and some members of the financial community are encouraging consumers to fight for their money. This money has bee appropriated illegally, through underhanded methods that break government regulations.