Banks stall on charges refunds

By JEFF PRESTRIDGE, MONEY EDITOR AT LARGE
Updated:

 

Complaints over the way banks handle claims from customers demanding the return of unfair charges have reached record levels.

Call centre staff

Industry insiders told Financial Mail that call centre staff have been given scripts to help deter most complainants from holding out for full refunds. Banks do not deny that call centre staff are working from scripts.

The Financial Ombudsman Service says it has received 1,000 complaints in the past week from those who have reached 'deadlock' with their banks. This is double the highest previous weekly total and suggests the total number of complaints is well into seven figures.

Daily calls to the ombudsman from those wanting advice on making claims are running at 2,000 - another record.

The news follows mounting evidence that some banks are controversially basing payouts on how vociferously customers complain - with only those kicking up the biggest fuss getting a full refund of charges.

In a recent speech, chief ombudsman Walter Merricks said some banks were applying a three-pronged approach on claims.

Initially they argue that the charges are justified. If a customer persists, they then offer to write off half the charges. Only if a customer issues court proceedings or takes the case to the ombudsman are the full charges reimbursed.

Earlier this month, the Financial Services Authority launched an investigation into the way banks are dealing with complaints.

Reclaim bank charges

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Piggy bank

On Friday, a spokeswoman for Barclays denied an inconsistent approach to complaints handling. 'We aim to be consistent so that two customers whose claims are alike will receive the same gesture of financial goodwill, irrespective of who they are or how often they have written to us,' she said.

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