The consumer champion behind growing rebellion
Tuesday, 20 February 2007
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Martin Lewis never imagined he'd be helping about a million people to rebel against their banks. Five years ago, he set up www.moneysavingexpert.com in his spare time while working as a television journalist. The site has become popular with savvy web users sharing money-saving tips with each other, but it was never meant to be the voice of popular consumerism.
Then something changed. Last year, Mr Lewis started to notice one topic of conversation cropping up more and more often on the site's user forums. "At first, a trickle of brave people reported they had taken on their bank in court over borrowing charges - and won," Mr Lewis said. "Then the trickle became a stream - and now it's a flood."
Moneysavingexpert.com had already attracted sufficient commercial interest for Mr Lewis to devote his energies to the site full time - and to hire several staff. But interest in the bank charges campaign has eclipsed everything else.
"I didn't instigate this campaign, but I have become its promoter-in-chief," Mr Lewis said. While his site is not the only web-based source of advice on claiming back charges - Which?, the consumer group, offers similar help, as do several others - it has rapidly become the most popular.
In fact, since November, more than 800,000 people have downloaded model complaints letters from Mr Lewis's site and thousands have shared success stories about the amounts of money they have won back from their banks.
"The banks always say these fees are set out clearly in their terms and conditions, but that argument is just nonsense," Mr Lewis said yesterday. "If I walked up to you in the street and told you I was going to punch you in the face, I'd still be breaking the law if that's what I did - it's exactly the same with these banks' charges."
Nor does Mr Lewis have any sympathy for banks that argue customers should simply avoid going overdrawn if they don't want to pay the charges.
"It was one of the first cases I worked on that made me passionate about this campaign," he said. "I met a woman who had always stayed on top of her finances, despite depending on benefits because she was a full-time carer. Then, two years ago, her benefits weren't paid for two weeks because of a clerical error. That triggered £250 in penalty charges from her bank, which she had no hope of absorbing, and the whole thing spiralled out of control. Within a year, she owed £3,000."
Mr Lewis believes that while the banks have already received vast numbers of complaints about charges, many more are set to arrive. "Without doubt, we have reached the tipping point for this campaign," he said. "I'm convinced that there are now far more people just beginning the process of complaining than those who have already been through the system."
Even so, Mr Lewis is also unconvinced by the banks' pleas that they might have to begin charging for current accounts if they are forced to pay huge refunds. "Customers should be celebrating the fact that they are, for once, one salvo ahead in the battle against the banks."
Nevertheless, Mr Lewis admits he has been astonished by the speed at which the campaign on bank charges has gathered pace.
"A year ago, there were just a handful of people taking the banks on," he said. "The exact figure for people who have downloaded our template letters is now 852,054 and it will probably be higher by the time we've finished talking - the key is that people now understand that anyone can do this, it's not just something for financial nerds."
The site plans to broaden its campaign. Already this year, the banks have suffered two embarrassing reverses in the form of separate regulatory rulings against charges for transferring mortgages and fees for payment protection insurance. These areas represent opportunities to take on the banks, Mr Lewis believes.
However, he remains sensitive to suggestions that such campaigns amount to ambulance-chasing. "I'm aware that the banks are suggesting we're promoting a compensation culture that could in the end mean all customers losing out," he said. "I'd describe it as a reclaim culture: these banks are unlawfully taking money out of your account without your permission - by complaining you're simply claiming back money that is rightfully and lawfully yours."
