bank charges

[mylo2012]

hi everyone,i've heard of a by-law that states that if u go over a certain amount of your overdraft limit and a direct debit is returned by your bank because of lack of funds,your bank can't charge you more than the amount that was short.if true does that apply to loans aswell.i,e black horse finance have charged me �100 for a loan repayment of �65 which was returned on top of �35 pound by my bank.was 20 pound short.thanks,hope you can help!!

[Ethel]

It isn't a by-law, but many people have successfully reclaimed bank charges:

http://www.moneysavingexpert.com/cgi-bin/viewn ews.cgi?newsid1141050760,24632,

You should telephone Black Horse and see if you can get the penalty reduced or cancelled.

[milly143]

You could also try www.consumeractiongroup.com for advise and steps, including template letters to send to your bank should you try to reclaim the charges.

I'm currently reclaiming �2,500 (yes, I know) from Barclays and after 1 or 2 letters they offered me �1000. I can issue a small claims through the courts to reclaim the whole amount which is almost (not guaranteed) going to be settled by the bank before it gets to court. You should give it a go, lots of people have done so successfully, including friends and family so I know it does work.

[Nether Edge]

Not by-law, but OFT considers �12 a reasonable maximum.