Banks Back Down over 'Ludicrous' Charges to Local People

3.21.32pm UTC (GMT +0000) Mon 12th Mar 2007

With growing evidence nationally of over charging and abusive behaviour by banks, two local residents, supported by MP Vincent Cable, have forced the banks to back down.

In one case Nationwide was trying to extract almost £250 as a result of an unauthorised overdraft of 95p! Rosanna Cobb, whose account it was, is a university student and was away for large parts of the year. As charges piled up Rosanna's parents were contacted by an automated Dalek-like speaking machine who announced that there was an extra £30 charge for every call. The problem was eventually resolved when Vincent Cable intervened personally with the bank's chief executive, Philip Williamson. He said:

"Like most bank overdraft charges these had no legal basis. The banks hope to frighten and intimidate their customers into paying up. Once we stood up to them and threatened the bank with legal action they capitulated. The level of incompetence in the bank was unbelievable. When I wrote on Rosanna's behalf as the MP, I received two letters written on the basis that it was my account! The lesson is: if banks are overcharging you, stick up for your rights as a consumer. Don't capitulate!"

In another case the bank First Direct had mistakenly, incorrectly and illegally, charged Stephen Ford over £1000. Vincent Cable was again involved and threatened the bank with court action. The bank gave in and paid up.