Consumer groups, led by penaltycharges.co.uk, continue fight undeterred against bank charges

PRESS DISPENSARY - Monday, Dec 14, 2009 - Penaltycharges.co.uk, along with other consumer groups, is urging the Office of Fair Trading (OFT) to continue its action against unfair bank charges on the basis that it bank customers continue to have a strong case.

Although some parts of the media took the recent Supreme Court decision to be a major setback against claimants, Stephen Hone - whose reclaim templates on penaltycharges.co.uk have been used by millions of consumers and have appeared on many third part websites, including the BBC - was quickly able to correct this view. The fight for justice is now back on track with the publication today of new guidance on how to reclaim bank charges.

The new arguments were formulated, in part, following a collaboration of information and ideas between a number of consumer groups. One new approach is to challenge the fairness of banks' charges via the Consumer Credit Act (1974). Like the Unfair Terms in Consumer Contract Regulations 1999 (UTCCR), one element of this challenge sees the burden of proof in determining the fairness of such charges falling squarely on the banks' shoulders. This will be another interesting development, considering the time and effort that the banks have put into requiring consumers to prove their claims, and routinely ignoring simple requests for the disclosure of their true costs.

Penaltycharges.co.uk - along with the other consumer groups - has called upon the OFT to fight on, although the OFT is still deliberating whether it will take further action, with an announcement is due later this month. However, at meetings this week, the four consumer groups informed the OFT of new legal arguments and strategies. It is clearly in the public interest that the OFT continues litigation using these new arguments.

Whilst political support may be strong, with many Members of Parliament responding to Penaltycharges.co.uk and making statements of support by requesting for a change in the law, little real action has yet been taken by the Government, despite the millions of people affected by unlawful and unfair bank charges.

The banks used 'clever' legal arguments in the recent test case, in order to try to nullify the effects of the UTCCRs and to cloak the true meaning and application of these charges, but ironically left the door wide open for the Financial Services Authority to investigate the fairness of the charges directly - without litigation - simply by making a regulatory decision.

Stephen Hone, Founder of Penaltycharges.co.uk, says:

"Being this close to Christmas it seems only right to compare the banks to the infamous 'Scrooge'. With this in mind, the consumer groups - 'the Ghosts of Christmas past, present and future' - have been busy compiling a host of new legal arguments to challenge the legality of 'Scrooge's charges."

"Millions of people are waiting to get the money back that was unfairly taken from their accounts and we are confident that the addition of these new legal arguments will see consumers' money being returned to them. The British taxpayer has had enough of propping up the banks without being consulted, and instead of using our money to pay exorbitant bonuses, it's time to return it to our pockets."

Hone continues: "We are also worried about the most vulnerable consumers who are continually having these charges deducted from their benefit payments, for example. Therefore, if for any reason the OFT does not continue the fight on our behalf, I, along with the other consumer groups, will look to bring a class action against the banks using these new arguments which focus on complex areas of the law. This will only be necessary if the OFT refuses to fight Scrooge over the fairness of the charges."

"Why fight on? Because it's the right thing to do and people who feel let down by the Government need help! We cannot expect some of society's poorest to fight Scrooge on their own."

Details of the new arguments and guidance are available from www.penaltychargesforum.co.uk or please call for a briefing chat.

Notes for editors

About Penaltycharges.co.uk

Penaltycharges.co.uk was founded in 2004/5 by Stephen Hone after he successfully claimed back more than GBP 5000 from Abbey National, which was 600% more than the value of his claim.

•The not-for-profit site offers free advice to members on a range of issues including the following.

•Reclaiming penalty charges

•Reclaiming mis-sold personal protection insurance

•Dealing with debt collectors and harassment

•Fighting repossession

•Fighting traffic penalties

•Debt advice

•General consumer issues

The other consumer forums involved in the collaborative action following the recent Supreme Court judgment are:

•Money Saving Expert (www.Moneysavingexpert.com)

•Consumer Action Group (www.consumeractiongroup.co.uk)

•Legal Beagles (www.legalbeagles.info)

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