Brits urged to avoid "unscrupulous" claims firms

Friday, November 27th 2009

Consumers concerned that they may not be able to reclaim bank charges after the Supreme Court's ruling earlier this week have been urged to avoid rogue claims handlers.

According to Which?, the court ruling against the Office of Fair Trading could mean a "bleak" outlook for those with outstanding claims for fees relating to unauthorised overdrafts.

The case may "drive people into the arms of unscrupulous claims handlers" who might try to charge an upfront fee, Which? chief executive Peter Vicary-Smith said.

He advised consumers to contact their bank if they are in financial difficulty.

"They're unlikely to give you your money back, but they have to take your circumstances into account and may waive any future charges," Mr Vicary-Smith remarked.

Meanwhile, Martin Bamford, chartered financial planner for Informed Choice, said that the case may have at least one positive outcome.

Banks may eventually introduce more transparent bank charges in the future in an attempt to avoid further court cases, he suggested.