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How it works
If you go into to default on under the terms of your banking agreement then your bank may levy extra charges.
Under the Unfair Terms in Consumer Contract Regulations 1999 and under the UK Common Law of penalties these charges are enforceable only when they are proportionate to the additional costs incurred by the bank.
Clearly the bank does not incur costs in the region of £30 to write you an automatic letter. Therefore, the charges are unfair and may be challenged under UK law.
Many customers have already successfully challenged their bank utilising this legislation.
We will recover your charges using the following process. This is a genuine no win, no fee arrangement – there is no payment required from you.
- After we receive your signed authority to act (These can be obtained / downloaded from the Claim Forms section) we contact your bank and pay to obtain copies of your bank statements for the past six years.
- When we receive your copy bank statements we calculate the total amount of penalty charges and also the amount of additional interest costs you have incurred.
- We then make a claim for these charges plus the interest on your behalf.
- If we don receive a satisfactory settlement offer from the bank we will warn them of impending court action.
- If no satisfactory offer is received then we will issue proceedings in the small claims court.
- In the highly unlikely event that the bank does not settle the claim then you may be required to attend the small claims court. We will provide full legal support at no cost to you.
- On receipt of payment from the bank we will deduct our charges and make immediate payment of the balance to you. Our charges are indicated in the table below.
| Example |
| Total recovered from bank |
£1,000.00 |
| FAB Charges |
-£250.00 |
| VAT |
-£43.75 |
| Net returned to customer |
£706.25 |
Additional information
- Cooling off period (14 days)– following signature of this agreement, I recognise that I have a cooling off period during which I may withdraw my authorisation.
- Cancellation – If I cancel my authority after this point then FAB will be entitled to recover any reasonable costs incurred. If I cancel this agreement after FAB have received an offer from the bank, then FAB will be entitled to recover from me their charges as if the claim had been settled on the basis of the bank offer.
- Complaints procedure – FAB have a documented complaints procedure. In the event that I am dissatisfied with the service provided, then any correspondence should be directed to the Compliance Manager at the FAB address.
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