How to reclaim unfair bank charges

If you have incurred wrong or unfair
bank charges , banking experts say you
can try to reclaim them or come to an
arrangement with your bank, especially
if you ’re in financial hardship.
According to www.moneyadvice .org , you
can start by talking directly to your bank.
If that doesn ’t work, you might be able to
get free help from consumer protection
organisations if the amount is relatively
big .

Is it worth trying to reclaim unfair
overdraft charges ?

Yes. It takes a bit of effort, but remember
that you ’ve got nothing to lose . Except,
perhaps , some time calling or writing
letters . It won’ t cost you anything . If you
have got a case it will be investigated for
free. Your bank won’ t penalise you . You
won ’t be treated differently for
complaining .
Who can reclaim charges ? Anyone can
write or speak to their bank and ask for a
refund. Some banks might even write off
charges as a gesture of goodwill to a
valued customer.
Although going the legal way at the end
may take time, it is still possible to get
your refund on time especially if you
have a genuine case and the bank is not
willing to cooporate on time .
The good news is that there are several
options you have before proceeding to
court.
If your bank refuses, you can always ask
the Central Bank of Nigeria Consumer
Protection Department to investigate (for
free) .
There is a need to pursue such refund if
you’ re struggling to buy necessities and
pay bills, or you’ ve lost your job .
Experts say you need to seek for refund if
the charges are unfair compared to what
you did . For example, if you went
overdrawn by N 500 and were charged
N 6000 .
Other instances when you may have to
pursue your refund is when you are stuck
in a spiral of charges . This might happen
if the charges keep putting you into the
red, and the overdraft keeps costing you
more in charges .

At times, money saving experts have the
best guide on how to reclaim unfair bank
fees.
Their guide will help you decide whether
to complain , work out how much you
might get , complain to your bank, write
good complaint letters , with sample
letters and templates , and take your case
to the CBN consumer protection
department if your bank won’ t help
However , experts have warned that you
also need to avoid using a claims
management company . They ’ ll charge
you to manage your case , but you can get
the same help for free .
Most online search results about
reclaiming bank charges are from claims
management companies trying to get
money out of you.
These companies will charge you to
reclaim money – you can do it yourself
using the guide above and avoid paying
them a portion of any refund.

Why were you charged in the first
place?

It ’s no fun getting unfair bank charges ,
but before you complain , ask yourself
why you were charged .
Did you read the CBN’s guide to bank
charges ? Make sure you understand what
you can be charged for. For example, you
might be fined for going overdrawn by a
small amount , for a short length of time .
you may be charged for using e- payment
services .

Steps to reclaiming wrong charges

Banks have long been accused of ripping
off customers with the high charges they
impose for minor account problems.
Penalties can be crippling, with top rates
of interest on borrowing, overdraft fees
and extra charges for bounced cheques
meaning that even a small mistake can
end up costing between N 5000 and
N 10 ,000.
This can be back -breaking for account
holders struggling to stay on top of their
debts. But the good news is, with a little
persistence , those that think they have
been charged unfairly, or who are in
financial hardship, can reclaim some
cash .
According to www .thisismoney. co. uk, the
first step before you jump straight in with
a complaint is to consider whether
charges were applied unfairly .
If the answer to any of the below is ‘yes ’ ,
you could be in with a good chance of
getting your money back .
According to experts, below are the
criteria you need to meet to begin the
process of reclaiming your funds:

Were the charges disproportionate ?

If you have been charged much more
than the cost of rectifying the mistake
there could be an argument for
reclaiming fees . A prime example of this
would be if you were slapped with a
N 3500 fee for straying beyond your limit
by a couple of naira .

Are the charges making it hard for you to
get out of debt ?

One of the main problems with charges is
that , for some, a small transgression can
result in a snowball effect, with
overdrafts and returned cheques earning
extra fees, which make it even harder to
get back into the black.

Are you in financial hardship ?

If you are struggling financially your
bank is under an obligation to treat you
fairly and be considerate of your
situation .
Those that : struggle to pay existing debts
on credit cards and loans, can’t pay their
bills , have a disability or illness , have
lost their job or seen a drop in income or
have penalty charges which are
swallowing most of their income, would
likely fit into this category .
If it is a one-off charge or the amount
was applied in error it can be fairly
straightforward to get a refund, by simply
making a call to the bank.
For those looking for a refund on several
charges the first step will be the same but
it may require extra leg work .
Complaints can be made in branch, over
the phone , by email or in writing .
Always make sure to note down the time
and date of any calls , and names of
anyone spoken to. If sending a complaint
in writing it can be a good idea to follow
up with a call to make sure the letter was
received.
This is the time to argue your case , so
make sure you include reasons as to why
you think charges are unfair and what
the consequences of the extra fees have
meant for your financial situation .
Don ’t let your bank dismiss you with bad
excuse: Persistence is key when banks try
to bluff their way out of paying
Don ’t let your bank dismiss you with bad
excuse: Persistence is key when banks try
to bluff their way out.
You might be surprised at what persistent
correspondence can achieve.
Once it has received the complaint, a
bank has up to some weeks to look into
the case .
The best result after this stage is a full
refund, but it may only offer a partial
refund or money towards repaying any
debts. Alternatively , the claim may be
refused altogether.
If the decision doesn ’t go your way it
doesn ’t necessarily mean the end of the
road .
Remember , in many cases the bank will
bluff and write back claiming the charges
are not unlawful .
Those claiming under financial hardship
may be asked to prove their situation
before a refund will be paid . This may
mean filling in more forms about income
and expenditure.
In some instances , banks may refuse a
refund but try to help in other ways.
For example, by stopping further charges ,
recognising payments to lessen the impact
or setting up a plan to help get struggling
customers get back on track.
Those still left with financial difficulties
even after the bank has made an offer
should follow up with the bank again and
explain their situation in more detail.
This is the time to be persistent or try to
negotiate – consider bargaining for a
quick settlement in return for only a
partial refund.
Alternatively, this might also be the
moment to consider taking your
complaint a step further.
Make sure to state your intentions to the
bank as even the threat of a legal
challenge or report to the CBN may
encourage the bank to repay the charges .
This will require signed consent and
copies of supporting documents to be sent .

Avoid history repeating itself

The best way to prevent banks ripping
you off is to avoid falling into a situation
where they can issue you with penalty
charges .
It might be easier said than done , but
don’ t miss payments , don ’t go into
unauthorised overdraft territory and
don’ t go for banks you ’ve heard mistreat
their customers .

Source:punchng