Paying too much for your borrowing?
So how do you avoid throwing good money after bad? One way is to ask for the information under the Data Protection Act, but the banks know why you want to look at your account history and can delay the process. They can offer you copy statements, and round you go in a circle. The process can be dragged on to the point of frustration, with the banks insisting that if you asked the right question they would be only too happy to help you. If you do manage to bring this search to fruition, you will have reduced your costs to £10 maximum.
If going back two years in the records will meet your needs and you bank on line then you are in luck. You can do this with no problem, but don't try to go back more than two years or you will end up paying the charge for copies of statements. Unless, that is, you bank with HSBC, whose on-line records can be accessed for the full six years of your search.
Once you have the information you need (and wouldn't it have been easier if you had kept your statements?) you can join the growing band of frustrated account holders who are challenging the charges which they have incurred in past years. This is made easier since the consumers champions 'Which?' put advice on their website. The included template letter has been downloaded and used by over 200,000 bank customers; another 150.000 have used the website Penaltycharges.co.uk whilst over ¼ million have used other websites including thisismoney.co.uk.
Thousands have received large refunds, on the basis of the OFT ruling that charges should reflect actual costs. Charges of up to £39 for each instance of 'bounced' payments were described as unfair under Consumer Contract Regulations, and it is this type of charge which is being successfully challenged.
Currently the bank's responses to this consumer rebellion are centred on the premise that free banking should cease to be available, as customers should pay for the service given. Charges are reported as likely to be in excess of £100 per annum for a current account, and even the usually moderate Nationwide Building Society has come out in support of this.
From here onwards, you just need to ensure that any charges which you incur are reasonable; keep checking your statements and then save them, just in case. As for paying for a current account, it's your money so bank it where the costs are lowest, but not under the mattress or it may not be your money for long. You may well object to paying for your account, but you have to admit that banks are secure.