Here's A Reminder Of The Bank Fees You Could Be Clawing Back

UK Home repossessions have risen almost 30 per cent over the past year, according to recent findings by the Council of Mortgage Lenders. What that translates into is 14,000 homes being repossessed in the first six months of 2007… and things look set to get worse, according to many pundits.

And that’s not the only bad news: the stormy times look set to continue in the stock markets. This is something that should concern all of us, not just those who are playing the markets. It’s all in the mix, and the international status of cities like London means that financial market turmoil ripples through the economy and can ultimately undermine employment trends and purchasing power. In fact, the boss of one of Britain’s best-known retailers was reported as noting that the spending power of those on £30,000 incomes has fallen by a quarter in the past couple of years.

Hurrah, then, for the Financial Services Authority. Homeowners can now reclaim so-called ‘exit fees’ on mortgages, as reported in the Sunday Telegraph – but there’s a rush to the gate for those trying to claw back bank fees and overdrafts. Here’s a reminder of some of the bank fees YOU could be clawing back from your bank:

Claw-Back Target #1: overdraft charges. Bank customers seem to be getting their own back. A full £1bn has been reclaimed on overdraft charges levied over the past two years. But the music stopped playing – rather abruptly – when, unsurprisingly, the banks agreed with the OFT at the end of July to test the legality of these charges in court. And it could take up to two years for a view to be offered in court… Don’t hold your breath.

Claw-Back Target #2: credit card fees. The OFT did rule that the commonplace £30 penalties for missing monthly credit card payments should be cut to a more equitable £12. So if you’ve been hit with anything more than this, you can claim it back.

Claw-Back Target #3: mortgage exit fees. As mentioned above, if you’re one of over 12m households who have switched mortgages in the past five years, then you might well be due a refund on exit charges – and that adds up to an average of £180 (but could be nearly £300 if you’re with certain providers). Keep in mind that you won’t be able to reclaim ‘early redemption’ penalties that might have been imposed when you paid off a mortgage during the timeframe of a special deal, such as a fixed-rate deal.