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Thousands join legal challenge to bank fees

Discussion in 'The Pub' started by stewy, May 13, 2010.

  1. ok, anyone looking into this? Only heard about it today, certainly want to do some more reading about it all but anyone done any other research or thinking about or already involved in it?

    Here is the story (hence why i want to do my own research

    and this is the website, where it all happening
  2. Was watching Sunrise this morn (bike needed servicing today so took it in then came home again!)
    they said it'safair dinkumcase, will take years but had merit as the banks are only supposed to charge you for costs actually incurred (administratively I would think) when you do the wrong thing such as pay your credit card illlate or get stung for zip balance on a direct debit etc. The dude from Choice came on for a chat. Kochie asked if it was worth joining and he responded that he himself had joined bec the banks had ovetly been ripping us for years! It'll just take legal argument and justification etc to determine a 'proper' term of penalty for the late payments etc but it seems the bastard banks are being called to task for the overly inflated rate of penalty. Until now, there's been no policing....
  3. It is legit.

    I've joined it, so have a bunch of people at my work !!
  4. IMF gets a 25% take on the refunded money if they win?

    They're predicting billions.

    Smells decidedly like a US-style class-action to me, where the lawyers get super-fat from winning a case.

    I find myself asking myself, do these lawyers really deserve 25% of people's money if they win such a case? If it totals in the hundreds of millions, then I ask myself how they're much different from what the banks were doing.
  5. They keep talking about costs... I just want to ensure I WON'T be paying a cent...

    Has everyone read through the doc thoroughly?
  6. Looks like you need to register for the class action, before they'll send you the product disclosure agreement.

    Yes, it's legit, but it's about the most money grabbing and shady form of "legit" I've come across.
  7. From the skimming of articles I don't get what grounds they have. Unless the banks have incorrectly charged everyone, then I just don't get it.

    Seems to me if the lawyers get a hundred or so off each client, then loose the case, they win anyway.
  8. I dunno if I should sign up... But I would be owed a lot of money due to crappy "overdrawn" $30 fee's constantly
  9. yeah i probably have a bit not huge amount i am pretty careful about payments etc so i doubt i would gain much, probably a little.......but the way i saw it was a bit of a way to give the banks a swift kick up the arse more then anything....

    might do some further investigation
  10. if it's not on facebook, it's not true!
  11. Report back to us and let me know if I'd have to pay them money! :) Just feeling sick today and looking at that many pages on a computer was killing my brain

  12. i just spent about 2mins watching you avatar.....it's very smart.....watching where they go and arrive from =D>

    oh yeah the thread, np...if i gotta pay skip it too
  13. Yes, the law firm stand to make a motza, but they're making no bones about that and it's about bloody time the banks were pulled up for their gouging ways. I can't be arsed to sign up for the sake of the couple of hundred bucks I might get back, but I say good luck to 'em.
  14. Yeah found it on some cool avatar site. Was watching for ages when I found it!! Then though "better quickly put it one before someone else does! :-O "

  15. It states in the article and the company page that you DO NOT pay unless they win.

    They are also taking more than 25% - it's 25% plus costs (which will be huge)

    They claim the banks can only charge to cover reasonable administrative costs on exception fees and to date have been overcharging.
  16. So if they win... I do pay? :-s
  17. Only as a percentage of what you get back (I think). Money back (even if not all of it) and a chance to be part of sticking it to the banks. What's not to like?
  18. The way these work is as follows.
    The litigation funder "stumps up" the $$ for the litigation. This pays the solicitors expenses and the money needed to run the case.
    A case like this it could be $250,000.

    IF they win they (the solicitors and the litigation funder together) take a percentage (25% here) of your payout, as well as the costs that are awarded against the bank.

    IF they lose they pay the banks costs, and you pay nothing. You also obviously get nothing.

    The action in question is based on the principle that whilst the banks are entitled to a reasonable fee for things such as overdrawn accounts, what they charge is unreasonable and therefore illegal.

    I dont like class actions as a rule! But here........... damn I'm tempted.....
  19. It's a pretty straightforward case.

    You have a contract with the bank. When you fall foul of the contract they hit you with a fee. According to Australian contracts law the fee can only be related to mitigating the loss from the broken contract, otherwise the fee is a penalty and that's not allowed. Penalties are unlawful. If the case wins, you wont get back your $30 dishonour fee... you'll notionally be reimbursed for anything above and beyond the mitigating cost.

    I've always thought that bank fees were out and out penalties and therefore unlawful. I hope the case gets up!

    Edit: Partial snap Tramp :)