Big Banks Face More Battles
- From: Robin T Cox <nomail@xxxxxxxxxx>
- Date: Wed, 30 May 2007 20:02:12 GMT
BIG BANKS FACE MORE BATTLES
Date : 29.05.07
Plymouth Herald
http://www.thisisplymouth.co.uk/displayNode.jsp?nodeId=133717&command=displayContent&sourceNode=133310&contentPK=17430928&folderPk=78032&pNodeId=133215
Furious bank customers have inundated a Plymouth lawyer with calls
complaining banks that have hit them with 'illegal' charges and then
harassed them for payment.
Up to 40 people contacted solicitor Neil Mercer after the Herald revealed
how single mum Alison Turner won an out-of-court settlement from one of
the country's biggest banks, Halifax plc.
Many of the complaints Mr Mercer has received are now expected to lead to
court action being taken against high-street banks.
One of those complainants, 32- year-old Rachael Cooper, a single
mother-of-two from Tamerton Foliot, wants to bring an action against
Nationwide, claiming that during the past six years she has paid £3,000 in
unfair overdraft charges.
Rachael, who is planning to go to university in September, says she wants
the money refunded and the bank charges mean she is "going round in
circles" trying to pay her household bills.
"Because of their charges every month I can't even pay all of my rent and
bills," she said.
Now she is hoping to take the bank to court, and added: "I'm prepared to
go the whole way."
Miss Cooper is among what experts think may be more than a million people
considering reclaiming bank charges, after a loophole was spotted in early
2006 by Stephen Hone, a Plymouth law student and father-of-three.
He argued that the Unfair Terms In Consumer Contracts Regulations 1999
says penalty charges must reflect administration costs.
Banks, Mr Hone said, thus cannot make a profit from people becoming
overdrawn.
Mr Hone has reportedly reached an out-of-court settlement with his bank,
Abbey, after lodging a complaint about fees totalling more than £2,000.
Hundreds of thousands of claims from other customers have also already
been successful, with the banks involved often settling before the claim
reaches court.
In Plymouth, Mr Mercer has received phone calls, letters and emails from
complainants who said that their banks had landed them with 'unlawful'
charges, or that they had been repeatedly pestered by bank employees
pursuing them for payment.
The Herald has previously reported how Miss Turner, a 31-year-old
mum-of-two from Devonport, launched a groundbreaking legal action against
Halifax last month, claiming the multi-national had caused her stress and
anxiety after bombarding her with more than 30 phone calls despite having
agreed not to do so.
Halifax this week revealed that the case had been settled, but neither the
bank, Ms Turner nor her legal team, including her former lawyer Mr Mercer,
is prepared to talk about the outcome or give any further information
about Miss Turner's case.
The surrounding publicity has, however, encouraged other fed-up bank
customers to come forward.
Mr Mercer said many of the calls were from 'vulnerable' members of
society, such as the elderly and single parents on low incomes, caught in
a circular debt trap of low wages and bank charges, making the situation
progressively worse.
The Herald reported that Mr Mercer handled Ms Turner's case while working
for city law firm Nash and Co. He has now moved to another city firm,
Curtis Solicitors, where calls have poured in from Plymouth, Devon and
Cornwall, and as far away as London.
He has already written to about a dozen of them and will meet some other
complainants next week.
He said: "We will certainly be taking some forward. There will certainly
be more litigation with the banks, in relation both bank charges and
unwanted, frequent telephone contact."
Michelle Winks, who works as an associate at Curtis with Mr Mercer, said
some of the complainants had been contacted and asked to supply more
information, for instance medical evidence.
"There are people who are coming back to us," she said.
Mr Mercer said: "When you talk to these people who, in their view, are
being harassed, they're at the end of their tether. They feel
disenfranchised and powerless against such large commercial
organisations."
However, he said, the law could help consumers, and added: "We're able to
change people's lives quite significantly sometimes."
[If you have been unfairly treated by your bank, please contact the
Herald's investigations editor William Telford by emailing
wtelford@xxxxxxxxxxxxxxxxxxx]
.
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