Money experts are recommending that people start claiming back their bank charges again.

In what was believed to be a cynical stalling tactic, the banks have spent the last six months arguing in the high courts that their charges are not subject to the fairness ruling.

Millions of bank charges have been reclaimed by disgruntled bank customers who felt ripped-off being charged huge amounts of money for overdrafts (up to £40) and being sent bank letters (average £12).

Having already paid out a fortune (an estimated £1 billion), the banks have won a slight respite by being allowed to appeal to the House Of Lords after both the High Court and the Court of Appeal found against their test cases, ruling that the overdraft charges were indeed subject to fairness rules, and thus could be challenged by customers.

In the meantime, the Office of Fair Trading (OFT) is conducting an on-going investigation into the fairness of the whole system. In order to speed up the process, the OFT is looking at a small number of banks, including HSBC, to examine the rights and wrongs of the situation.

The House of Lords is due to hear the appeal on 22 June, 2009, and their ruling will be binding, unless the banks lose again and seek a hearing in the European courts. The House of Lords case has been scheduled for three days and observers are hoping that the banks do not go for an adjournment in order to slow the ruling down.

Experts believe the banks are about to receive a double whammy as the Lords rule against them and the OFT concludes the charges unjust.

This will signal another round of blood lettings as customers claim back further billions. A customer can claim all charges that they think unfair and over a six year period, and claim the interest due on the amount under dispute. Before the test case into the theory behind the law, few cases ever reached the courts, with banks usually settling out of court. The potential cases built up to such a point that a test case was inevitable. Claims settled before the test case often involved full refunds, whereas it is thought that future claims will allow the banks to allocate some cost towards the charge. For example, with a £35 charge, the bank might be allowed to justify a £12 charge, meaning that the customer will only be able to rightly claim the difference.

It is thought that the banks are also ready to admit defeat, with millions of pounds having been ear-marked for future claims.

Customers with valid claims are being advised to get their letters lodged, so as to start the process before the inevitable rush. Template complaint letters are available from a number of sources.

Guest Article by Neil Camp