Bank charge reclaims 'set to soar'

It seems a pretty fair bet that, as higher-than-ever gas and electricity bills land on the nation's doorsteps over the coming weeks, millions of homeowners will be digging behind the sofa for some long-lost change to help them meet the ever-rising tariffs.

Likewise, though the situation is far from genuinely desperate for most, no-one is likely to turn down a bit of extra cash in these troubled times and, as such, it is to be expected that claims for over-the-top bank charges from yesteryear will keep rising so long as the credit crunch continues to make itself felt.

According to recently-published figures from the Consumer Action Group, some £18.3 million has already been paid out to bank customers who have, at some point in the past, been overcharged for going over the limits on their bank current accounts or credit cards.

Though this figure may be a drop in the ocean to the major banks who earn millions every day, when it is considered that the average bank charge incurred in the UK currently stands at £25.73 and the typical consumer is stung 8.7 times, giving a total of around £215, taking action to reclaim past fees suddenly seems like a foolproof means of beating the credit crunch blues.

Jo Roberts, director of needanadvisor.com explained: "With people struggling for money they are going to do whatever they can to reclaim money.

"People will go as far as they can, but if it's a few pounds they're not going to take it too far. Likewise if it's a hundred they probably will."

Of course, the most financially-savvy consumers have probably already sent off their claims and even got their money back, while the British curse of 'financial illiteracy' prevents millions from winning back what is rightfully theirs.

However, even those who lack an in-depth understanding of the up-to-date legislation covering bank charges, are increasingly becoming aware of their rights, thanks largely to word of mouth as colleagues and friends advise them about the reclaims process.

Despite this, consumers shouldn't pin their hopes on a tidy windfall from their bank, with the financial watchdog having recently given institutions the right to waiver any claims.

Though the money is legally owed in the long-run, homeowners shouldn't bank on the money earned back to pay off their mortgage, credit cards or utilities bills but rather look to it as a bonus that will drop through the door unexpectedly.