Step 2 - Refused a refund? Send a final letter

Many people have told us that their bank has refunded charges (in full or in part) after sending the 'Step 1' letter.

However, in some cases banks have refused to provide any refund.

The reasons given are typically - you agreed to the charges; they are part of the terms and conditions of your contract; our charges are no more than other banks impose; or that the Unfair Terms in Consumer Contract Regulations cannot operate to restrict the free market and/or agreed prices etc.,

Do not despair. These arguments are ill-founded.

If your bank refuses a refund on one of these grounds, please consider sending a final letter. An example style rebutting the bank's standard arguments is set out below. Remember to adjust the letter to suit your particular facts.

Final 'Step 2' Letter
(doc) or (PDF) or (html)

If you don't get a response after 7 days, you should consider:
Step 3 - raising a small claims action for payment
Step 3 (England, Wales or NI)
Step 3 (Scotland).

Alternatively, if you do not feel confident raising a small claims action, or you claim is over the small claims limit (£5,000 in England & Wales, £750 in Scotland, & £2,000 in Northern Ireland) you can lodge a complaint to the Financial Ombudsman Service. The Ombudsman can require your bank to refund your charges.

However, if you do raise court proceeedings you must be prepared to undertake all of the work necessary to present your case - up to and including a full evidential hearing. The responsibility for litigation will rest with you alone.

Please note we do not have the resources to advise on individual cases online.

If you are successful in getting charges refunded, let us know at: mail@bankcharges.info.