These bank charges are legally unenforceable according to an expert on reclaiming penalty charges made by banks. In actuality, the banks know these bank charges and avoid being sued by their clients because these are legal charges. That is why banks, of course, disagree to the accusations. However, these bank charges can be reclaimed even after you have already closed your account with the bank.

The law simply states that any bank charges levied on the bank's customers must be proportional to the actual costs they incur. The question is, ?Does it really cost ?35 just to automatically send a letter when someone has gone ?1 over the limit?? Therefore, contact your bank and ask for a list of your last six years? bank charges, then add the interest on top and ask for a full refund. If the bank refuses to give you the refund, and then inform them you'll go to court under the small claims system. In most cases, banks will merely pay out.

But this is not an official process. This is about challenging the banking world and threatening them with court action. However, there's no guarantee of winning, and yet so far a lot of people have. Below are a few more ways in helping you understand and get started on checking if you're one of those with unfair bank charges.

First of all, in a situation where you've gone over your overdraft limit or a direct debit payment or check bounces, there's a penalty of ?30 to ?35 a time which is one of the bank charges. Is a charge this range really proportionate to the cost? Just remember it could be merely a charge for going a penny over the limit. Significantly, there's a fine, another one of the bank charges, for going over the limit, and this fine is too high. Thus under the law of penalties, these bank charges are ?extravagant.? Nevertheless, it plainly sends a computer-generated automatic letter with a franked stamp.

Lastly, the following are ways in helping you to reclaim the bank charges. These are:

1. Set up a parachute bank account.

2. Find out and total your charges.

3. Write to the bank and ask it for your money.

4. Threaten to take it to court.

5. Take it to cour

But most of all, if the banks still will not acknowledge your claim (since they don't always pay up automatically even though they have lost the case), you can send in the bailiffs. Don't worry. There are a number of people exercising this option. These bailiffs will then claim the money for you.