Have bank customers in the past believed in fairy stories? Banks now recommend customers to seek independent advice.

Usually when computers report incorrect information it is almost always due to human error. Bank managers have a lot of flexibility in agreeing terms with customers. We see the overall picture because we audit accounts held by all the banks. We see wide variations in terms of business between customers with no apparent explanation. Banks now recommend business customers to seek independant advice

We go through a lot of painstaking detail to arrive at our conclusions. The more complicated the banking procedures the more scope there is for error.

True, some investigations turn up undercharges but we find discrepencies in every investigation we carry out. So far the biggest refund obtained is almost £180,000 on a single acccount. Bear in mind we never make claims we cannot substantiate. Take a look at a typical report

How effective is the Banking Ombudsman?

The Banking Ombudsman will not investigate a complaint without written agreement from the bank that the complaint is "deadlocked". Strangely, the Banking Ombudsman has no statutory powers. In a typical year the Banking Ombudsman's office receives about 7,000 complaints. Of these 90% remain unresolved by the end of the year(according to the Banking Ombudsman's own annual report). Companies with a turnover £1000000 are precluded from this scheme anyway.

Surely not all companies leave it to chance?

Most multi national firms look after their own interests by having treasury departments, in addition to accountants. These departments have "on line access" to the banks' computers. Even so they still need to check that the bank's daily net cleared balance figure is correct.

Treasury departments are very expensive to run and would not exist for very long if they did not pay their way. Unfortunately treasury departments are way beyond the means of most companies. Also less sophisticated companies are sometimes afraid to question their bank in case they get even worse treatment.

What's involved in bank charge auditing?

Producing a detailed report is a specialised job and requires computer programs to check the banks calculations. Banks charge interest on the cleared daily balances, which are different from the balances shown on the statements. Cheques paid in at the home branch appear on the statement on the date they are paid in but are "not cleared for value" until the third working day afterwards and "not cleared for fate" until the fourth working day. Working days do not include weekends and bank holidays although interest is still charged on these days. Cheques paid in at any bank other than the home branch take the same time to clear as they enter the clearing mechanism immediately.

Most overdrafts are charged interest at an agreed percentage over base rate. This goes up or down from time to time. Sometimes the bank imposes a minimum artificial base rate as a condition of the facility. Groups of companies and companies with several accounts usually have an arrangement with the bank that they only pay interest on the net cleared daily balance. This is the sum of all the overdrawn balances on each account less the sum of the credit balances. Hard Core borrowing clauses and Tiered Interest Rates complicate the problem even further. Severe penal interest rates, as well as fixed penalties, are applied if the borrower exceeds the agreed overdraft limit. Bank errors can result in these punitive rates kicking in prematurely, with disastrous results. Taking account of all the factors is almost impossible and could take months, unless you have the right computer programs.

Why do I need your services?

All businesses should have an historic audit of their bank accounts at least once every five years.

• We often find that businesses who are so sure that have not been overcharged in fact been significantly overcharged. Without muliple regression auditing the risks of being substantially overcharged are very high.
• You may already be concerned that your Bank is overcharging, but perhaps cannot prove it. It is our experience that there is rarely smoke without fire.

See some of our completed cases for an indication as to the range of businesses that can be affected download a typical report, and form your own opinion.

How much will it cost?

Download an audit contract form which gives details of prices and terms and conditions. These terms are subject to negotiation depending on the amount of work involved. Alternatively complete the On Line Quotation Request Form. Alternatively contact us by phone, letter or email using the details at the foot of this page.

We recommend that any initial study normally be for six years. In the event of errors being found we can go further back if needed. Periods shorter than six years can be accommodated.