www.iva.co.uk

Hello all,
Today the banks lost the test case on O/D bank charges.
This question has probably been asked before, but we put a claim in for bank charges about 6 months before our IVA began. Obviously the bank concerned is one of our creditors. If they do eventually payout are they likely to refund people in IVA's etc and if so is it likely that I will be able to keep the refund and how much is the limit on windfalls that have to be paid into IVA's. Our claim was for about £500 between us.

If the Bank is one of your creditors then as far as I am aware any refund due would be taken off what you owe them

Can they do that because they have agreed to the terms of the IVA. And claiming all the money would not be fair on the other creditors.

Well they did to me through Lloyds TSB. As I owed them money as a creditor what I would of got otherwise was taken off my outstanding balances.

If the banks start charging again for current accounts after losing the case, how do we in IVA's do when we start getting charged for withdrawing money? It is an added expense

They consumer say "By letting people access money they don't have(unauth' OD) the Banks are encouraging people to take the money and then charged punitively(fees etc)" Now you can change whats in the bracket and put (creditcards) and the sentence will still make sense.

With the credit cruch and continued write downs of the UK Bank assets do they need this Bank charge judgement against them??? This has been another direct 'missle' hit to their salvo. They can put up or shut up and quite frankly they are 'painted in the corner'.

They make £3.5 Billion a year on the charges and that could now mean only thousands or millions instead as OFT will look for more proportionality in the charges.To chage £30 for unauth O/D of 30p is daylight robbery

Yes, the banks can fight back with preemptive delays with passing on mortgage interest rates(watch this one), and appealing the Judgement ruling but they would become Public Enemy number one - a useful deflection for the government hounded with the 10 tax rate reform and the teacher strikes.

It is a Pperfect Storm alright for the banks.

I think you will have to declare it and it will be used towards your IVA in full. I may be wrong as this may effect me too

I got a wad back from lloyds, they just took it off my balance. Was for misselling loans though but I'd expect them to treat it the same way whatever the reason. Pity, never actually saw any of the cash.

Anyway, at least our complaint to the FOS was a worthwhile exercise.

Maybe we should hit em for bank charges too in the near future

PBH

Any money successfully reclaimed will be used to reduce the debt with that bank and will not be paid to you directly.