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Payment Services Regulations 2017 - Your rights for unauthorised or incorrect payments
Consumer Credit Act 1974 - For credit agreements and unfair relationships
FCA Banking: Conduct of Business Sourcebook (BCOBS) - Rules for bank accounts
FCA Principles for Businesses - Treating customers fairly (Principle 6)
Consumer Rights Act 2015 - General consumer protections
Under the Payment Services Regulations 2017, Regulation 76, your bank must refund an unauthorised payment immediately (by the end of the next business day at the latest) unless they have evidence you authorised it or acted with gross negligence. The bank bears the burden of proving fraud or gross negligence.
While basic overdraft charges are harder to challenge since the Supreme Court ruling in OFT v Abbey National, charges that are disproportionate to the cost incurred may still be challengeable under the unfair terms provisions of the Consumer Rights Act 2015 if they cause a significant imbalance.
Banks can close accounts with reasonable notice (usually 60 days under terms), but closing an account in a way that is discriminatory or retaliatory (e.g., after you complained) may be challengeable.
Unfair treatment during arrears, excessive charges, failure to consider forbearance options (as required by MCOB 13 rules), and mis-sold mortgage products.
Write to the bank's complaints department. Be specific about the regulatory breach and the remedy sought.
The bank has 8 weeks to provide a final response under FCA DISP 1.6.
If unsatisfied, refer to the FOS within 6 months of the final response. FOS can award up to £415,000.Vulnerability: Banks must take extra care with vulnerable customers under FCA guidance FG21/1
Interest: FOS routinely awards 8% simple interest on financial losses
Consequential losses: You can claim for knock-on effects (e.g., credit score damage, missed payments elsewhere)
Financial Services
Banking & Current Account Disputes
Overview
Disputes with banks cover a wide range of issues including unauthorised transactions, unfair charges, mortgage problems, account closures, and lending complaints. Banks are regulated by the FCA and complaints can be escalated to the Financial Ombudsman Service (FOS).
Key Legislation
Common Issues
Unauthorised Transactions
Under the Payment Services Regulations 2017, Regulation 76, your bank must refund an unauthorised payment immediately (by the end of the next business day at the latest) unless they have evidence you authorised it or acted with gross negligence. The bank bears the burden of proving fraud or gross negligence.
Unfair Bank Charges
While basic overdraft charges are harder to challenge since the Supreme Court ruling in OFT v Abbey National, charges that are disproportionate to the cost incurred may still be challengeable under the unfair terms provisions of the Consumer Rights Act 2015 if they cause a significant imbalance.
Account Closures
Banks can close accounts with reasonable notice (usually 60 days under terms), but closing an account in a way that is discriminatory or retaliatory (e.g., after you complained) may be challengeable.
Mortgage Disputes
Unfair treatment during arrears, excessive charges, failure to consider forbearance options (as required by MCOB 13 rules), and mis-sold mortgage products.
Step-by-Step
Step 1: Formal Complaint
Write to the bank's complaints department. Be specific about the regulatory breach and the remedy sought.
Step 2: 8-Week Deadline
The bank has 8 weeks to provide a final response under FCA DISP 1.6.
Step 3: Financial Ombudsman Service
If unsatisfied, refer to the FOS within 6 months of the final response. FOS can award up to £415,000.
Key Points
EvenStance Can Help
EvenStance can analyse your banking dispute, identify FCA regulatory breaches, draft your complaint letter, and guide you through FOS escalation.
Related Guides
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