Business Bank Charges

May 17th, 2014

8d51d552-fb8b-46fa-8f46-7a6880c0d728Just like personal banking customers, many business banking customers are being charged unfair fees for the use of unathorised overdrafts, bounced cheques or failed direct debits.

Similarly to personal banking, if your business has been subject to these unfair fees you can reclaim business bank charges.

Banks in the UK are currently raking in billions of pounds each and every year through these penalty charges, and if your business has been incurring them then you may be entitled to reclaim thousands back in unfair bank charges.

Recent research by Business Moneyfacts has revealed that despite the 2002 Competition Commission investigation into unfair bank charges, there had still been a gradual increase in the fees imposed on small and medium-sized enterprises.

The cost of using unauthorised overdrafts has risen on all business bank accounts offered by the major High Street banks which has in turn helped the banks record their highest every profits last year.

‘There is a wide range of fees and charges associated with an unauthorised overdraft on a business current account. Charges can range from £4 to £30 per day or up to £30 per debit, a potentially costly mistake for any business to make,” said Lee Tillcock from Business Moneyfacts.

As opposed to Consumer Regulations, Business banking accounts are covered under ‘Common Law’, which ultimately means that there are a number of differences in what the banks can and cant do in comparison to personal bank accounts.

The charges that you may incur for the use of an unathorised overdraft or bounced cheque are technically a fee for breach of your account contract. However, according the the Law, the sum of these charges must reflect the actual costs incurred by the bank and can not exceed damages the bank may have suffered due to the breach of this contract.

It is commonly thought that the maximum charge that could be justified is about £2.50 whereas the charges are commonly about £30 per incident.

The process of claiming these charges back involves spending some time identifying and calculating (including interest) exactly what you are owed over the last 6 years of banking. Further reading on this can be made at

You can then send the bank a form letter of complaint claim which will detail the reasons why you believe these charges to be unlawful.

Should the bank refuses to refund your charges then you are faced with two options. firstly you can issue a claim in the Court and the second would be to refer the case to The Financial Service Ombudsman who has the ability to investigate the claim on your behalf and force the bank into paying a refund.

If this is something you dont feel confident doing yourself then there are a number of Claims Management Companies who will typically offer a ‘no-win-no-fee’ agreement, which means that you wont be charged unless your claim is successful.

The only two things that will ask of you: your bank statements from the last 6 years, (copies will do), and that your turnover is less than £1 million.

If you are a busy person and would rather spend your time building and managing your business rather than sitting in telephone queues, then engaging such a company may be sensible. Their commission is typically 25% plus VAT of whatever they recover in return for doing all the work.

The UK PPI Scam

November 10th, 2013

Payment protection insurance was initially a good initiative until some crooks started taking advantage of unsuspecting clients. This is what has lead to some financial authorities to crackdown on the rising cases of mis-sold PPI. In 2010, the Financial Services Authority crackdown on most financial institutions and established that there were so many mis-sold PPI cases. Most customers were actually confused when they learnt that they were victims of mis-sold PPI. However, claims companies have facilitated the reclamation process and now many clients can breathe easily. In the crackdown, it was further established that actually over 85% of policy holders have tried to make claims which turned futile.

This was a good plan

The PPI is a good plan in theory because it can help one to complete loan repayments. Unfortunately, many PPI providers are not genuine and once you place a claim, you will not succeed in proving your case. It also realized that most of the people that have these policies did not want it but were forced to have it. The crackdown has become serious with most offenders who were found guilty of mis-selling PPI having to pay hefty fines. The process to ask for a refund is quite involving and this is why it is advisable to hire a professional company to handle the issue for you.

Valid reasons for making a claim

In as much as the crackdown has been quite beneficial in cleaning up the industry, there are still so many people that are still confused and cannot tell if they should reclaim their money.  Here is a simple checklist that defines a mis-sold PPI. You should check the following issues and you will be able to understand where you stand.

Your PPI is mis-sold if;

  • You were told it is compulsory
  • You were unemployed at the time you took up the cover
  • You did not get sufficient information about the policy before the sale
  • You were not informed of the financial obligation it entails
  • You were made to believe you cannot apply for it elsewhere.

Where to start

If any of the above scenarios define your situation, then find a claims management firm immediately and have your PPI claims process started soonest possible. You should furnish the agency with all the relevant details so as to make the process easier. It might actually take some time before you can actually get a refund but you do not have to worry since the firm you choose will handle the whole process for you as long as they have the relevant experience.









How To Claim Back PPI

November 7th, 2013

What is PPI?

This is a kind of insurance that a debtor has to procure to provide security of debt payment. The supposedly benefit of this insurance is that a borrower will still be able to liquidate his debt should there be uncertain eventualities in his life. When he dies, is disabled or loses his job, the creditor will be paid by the insurance company. The amount of insurance covers the whole amount of loan.  How far back can you claim PPI is worth looking into as claims companies vary from 6 years with some suggesting up to 15 years.


Why there is a need for PPI refund

 In the year 2011, there came the revelations that many banks in the UK collected the insurance on mis-sold PPIs. Bankss were mandated to make a refund to the borrower since the PPI was classified as mis-sold. This happens because the borrowers were deceived and were made to believe that the PPI is a necessity. Some lenders purposely did not inform the borrower but instead added the cost of insurance to the loan payments.


How to claim the refund


  • If you were asked to make PPI payment in the past, you should contact the insurer or the bank.
  • You have to prepare all the documents such as receipt of payment of the insurance and receipts of loan payments. If possible, attach the documents for the loan release. This will indicate the amount of original loan that you had obtained and the amount of payments you made on the monthly basis.
  • These might not be enough, so you better get from the bank or insurance company a checklist of the requirements for refund or claim.
  • After collecting all the documents, file your claim.
  • It is advisable that you hire a claims management company because the company can handle the legalities in a better way.
  • If you have filed for a claim on your own, do the follow-up for the release. If you filed it through an agent, follow-up your claims with the management company.


Duration of the claim


You may receive the payment of claim in approximately a month’s time if claimed through a management company. If you file for the claim on your own, then you should expect a longer time of payment and you might also receive a lesser amount than what you should actually get.  But then, you have to pay commission to your claim agent once you receive your refund through their intervention.


It is better to take the help of a claims management company if you want to claim back your PPI amount successfully. This is because the right company can guide you in a better way and help you throughout the process of filing your claim.