Answering the charge

Author: Stammers, Simon

Source: The International Journal of Bank Marketing, Volume 25, Number 6, 2007 , pp. 427-431(5)

Publisher: Emerald Group Publishing Limited

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Abstract:

Purpose - The paper aims to discuss the likely growth in bank charge reclaim volumes and the readiness of document systems to cope with statement requests within regulatory deadlines. Design/methodology/approach - The fieldwork for this paper examined the state of document management systems at over 30 of the country's institutions that offer current account facilities. The research was conducted through telephone interviews and took place during February and March 2007. Findings - One in every 14 requests for copy statements in pursuit of claims for a refund of bank charges is not being met within the regulatory 40-days period. If just half of the people who are potential claimants, but who have not yet processed a claim, do so, then this figure will rise to one in every nine requests not being answered within the designated timeline. Practical implications - Banks are having to invest to meet the peak in claims-based requests by either duplicating their microfilm archive and employing more people to handle claims, or digitising up to six years, worth of statements for ultra-rapid retrieval. More strategically-minded banks, however, are not seeing the current reclaim peak as an isolated incident, and are investing in systems which allow a free-flow between microfilm archive and short-term digital systems, so that spikes in enquiry demand can be rapidly accommodated without massive tactical cost in the future. Originality/value - The paper illustrates how UK banks are coping with growing reclaim volumes.

Keywords: Banking; Banks; Document management; Service charges; United Kingdom

Document Type: Research article

DOI: http://dx.doi.org/10.1108/02652320710820363

Publication date: 2007-09-11