RBS will take action over refunding bank charges

High Street bank Royal Bank of Scotland has reportedly decided that in the event that the ongoing High Court case in to bank charges is lost by the banks it will be pro-active in ensuring that all customers receive a refund on their bank charges that were applied for exceeding the credit limit on the account. The banks, along with seven others, is currently appealing against a ruling made by the courts earlier this year, when it ruled in favour of the Office of Fair Trading.

The news comes from an internal document that was apparently leaked to the media, which states that if the banks lose the overall case RBS will then work out how much each customer is owed in bank charge refunds and will return the cash to them.

The bank has around thirteen million customers, although not all have been hit with these costly charges in the past. However, many may find themselves receiving refunds after charges of up to £35 a time were applied for exceeding the overdraft limit.

The internal document is said to have stated that RBS is ‘preparing systems and processes to pro-actively refund charges to the group’s customer base. All customer accounts that are due a refund will be calculated as accurately as possible… Any monies will be accurately accounted for and reconciled.’

One campaign official was a little concerned, and stated: ‘The news that they may proactively repay people has to be welcomed, but I’m also worried by the idea that they will calculate these repayments themselves as they inevitably won’t do it properly. We also have to ask how far back will they go? If banks lose the High Court case – and they will – it can be argued that reclaims should go back to 1995 when the Unfair Terms in Consumer Contracts Regulations came in and not just six years as many are claiming.’