The Banks Strike Back
If you so much as skim the financial press you will have read about the case in which Lloyds TSB unexpectedly won a case in the district court against a customer attempting to reclaim bank charges.The ink is barely dry on the ruling, yet already the banks are seizing on it with the subtlety of a mafioso browsing through a neighbourhood restaurant and commenting on how combustible it all looks. Perhaps you should consider taking out some 'insurance', they say.
Customers from a variety of banks have all received letters drawing their attention to the ruling, and suggesting it may be used in their defense. Whilst none of the letters we are aware of claim the ruling sets a precedent, neither does the wording make clear that it is in fact no precedent at all.
Try this one from Abbey;
"I also refer to the recent judgement of the court in the matter of Berwick & Haughton -v- Lloyds TSB wherein it was found that "...there was no grounds in law for recovering from the bank the amount of any charges he had paid to it"
Or this particularly twisted wording from Alliance & Leicester;
"We would like to reassure you that if you do accept our offer of settlement we will continue to operate your account," it said. "We would only do so on the basis that you accept the terms and conditions of your account previously notified to you and that charges will be applied in accordance with our current charging policy."
Or as Don Corleone might have put it;
"No your honour, we never threatened to kneecap him, we simply offered assurance that if he would still be able to walk around....as long as he paid up and did what he was told in future".
If the banks were so sure this case strengthened their position, why aren't they grabbing the very next case and taking it to the High Court, where a legally binding precedent could be set? It's precisely because they know this is not the case that they are instead resorting to intimidation and underhand tactics.
If you've received a similar letter from your bank we want to hear about it. Write to us at editor@theratetart.com. Include details of the letter or preferably a scanned copy with your private information blacked out. We'll include the best example of legal snakery in our News Features section over the coming weeks.
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TheRateTart
rate tart noun [C]
1 also card tart, card surfer
someone who continually switches credit card providers in order to get the lowest interest rates available
2 also rate surfer
someone who regularly switches savings or loan accounts in order to get the best interest rates available
rate tarting noun [U]
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