How do you define excessive fees?
As the ongoing bank charges debacle continues we have today seen the emergence of a possible similar type of situation in the letting agency market. A judgement today, which ruled that excessive fees charged by many letting agencies across the UK can be reclaimed over a 14 year period, has caused many consumers in the UK to consider how you define excessive fees.
While many believe that any contract which they sign, where the fees are clearly stipulated, are legally binding it appears that so-called "excessive fees" can only cover additional costs associated with an agreement and cannot be for "profit". This now pose the question as to which other areas of the UK financial market may now be brought into the "excessive fees" saga and ultimately how much compensation may be claimed back in due course.
As we have seen with UK banks, which are fighting the bank charges case vehemently, the various financial institutions central to the situation will not give up this compensation easily. While the letting agency ruling could open the gates to compensation approaching £26 million the situation for the UK banking sector could reach the billions. Whether credit card providers, loan providers, store cards or other financial instruments can be brought into the argument remains to be seen but there are some intriguing opportunities for the future.
Share this..
Related stories
MP perks on the verge of reform
As the anger expressed by UK voters against the massive array of MP perks on offer continues to grow there are signs this evening of a significant shift in this area. David Cameron for one has confirmed that if he was to take the office of prime minister in the UK he would not claim a second home allowance. This is probably aimed at Gordon Brown who, despite having a grace and favour home in Downi...
Read MoreAlistair Darling attacks UK banks
Alistair Darling has today attacked the UK banking community amid claims that banks are not abiding by pledges they gave to the government in return for financial assistance. This is the latest in a tit-for-tat battle between the UK government and UK financial sector with consumers and businesses stuck in the middle. Despite apparently receiving what they believed were watertight pledges from the...
Read MoreDid Santa Claus bring you everything you wanted?
As Christmas comes to an end it has been suggested that nearly £2 billion was spent in the run-up to the festive period on unwanted gifts. This is an enormous figure which is backed up by the online auction site eBay which is seeing record transaction numbers at present. So have we really spent £2 billion on wasted gifts?
The fact is that for Christmas many people feel obliged to...
FSA issued new rules on sale and rent back deals
The FSA (Financial Services Authority) has today issued a number of new rules which will form a key part of the future sale and rent back market for UK homeowners. This is an area of the market which has attracted some of the more undesirable salespeople in the financial world and there have been many instances of pressure placed upon homeowners to take unrealistically low prices for their propert...
Read MoreUK credit card holders susceptible to identity fraud
The various credit card agencies around the UK are this week embarking upon a period of education for UK credit card holders who use their "flexible friend" overseas on holiday. When you consider that UK credit cards are used 10 times every second overseas by holidaymakers, the potential to fall victim to identity fraud and credit card fraud is substantially increased.
Aside from th...