Banks Are Thieves

Recent Outcomes

Bank penalty fee reimbursment claims

Probably the greatest achievement was an estimated $18,000 to $20,000 by a woman in Bundaberg in Queensland. She visited the www.BanksAreThieves.org web-site only a couple of months after it had been established and, with tutoring, beat one of the four major banks at their own game. Obviously only some of this payout was the recovery of her penalty fees - 2/3rds of the payout was interest.

The highest ratio for exemplary damages I have heard about is, in two cases, a figure TWENTY TIMES the sum of the total of the penalty fees plus interest. There were numerous "late payment" and "honour fees". The bank settled out of court after legal proceedings were commenced. Each settlement came to five figures. Another person asked his bank (again one of the four majors) to refund the two "penalty fees" applied to his credit card account and ADD 10 TIMES THIS AMOUNT TO HIS ACCOUNT. The bank initially refused the exemplary damages request but re-imbursed the account of the person the amount of the "penalty fees" over the telephone. The person then commenced legal proceedings, costing just $80 or so, and about a week before the the case was to be heard an offer from the bank for $700 was received to settle the case. Revealing the name of the bank or the terms of settlement would breach the Confidentiality Agreement.

Previously the person in question used to get back DOUBLE over the telephone as compensation (as well as the "penalty fee" refunded) and I can vouch for this as I've done the same.

I know of some people who are not charged any "penalty fees" now from their bank/financial institution after raising this matter. One fellow received the amount of the "penalty fees" as compensation from one bank!

Another fellow, without any assistance from me or anyone else concerned with this web-site (www.BanksAreThieves.org), contacted the Financial Ombudsman Service. He obtained $470 back in fees stolen* from his account.

* default fees/penalty fees

Yet another man rang his financial institution about some other matter, and he merely happened to mention that he would like the penalty fee removed from his account. The 'bankie' immediately apologised, said that the money would be refunded and told him that it would never happen again.

There have been some other mixed outcomes but every story I have heard involves the bank, or financial institution, refunding at least part of the money.

It can only help your case if you mention the O'Dea v. Allstates Leasing Systems (W.A.) Pty Ltd judgement where it was ruled by the full bench of the High Court of Australia that a party, in breaching any contract, is only liable for "liquidated damages" - or what it actually costs the opposing party because of the breach. This judgement by the full bench of the High Court of Australia, called a precedent, and is binding on all other lower courts.

Apparently banks always settle rather than comply with a subpoena requesting that they substantiate their claim(s) for these outrageous fees!