Bank charges row goes to court
The Office of Fair Trading (OFT) and a group of big-name banks will tomorrow commence High Court proceedings to decide the legality of unauthorised overdraft charges.The OFT has said that it believes the charges to be unfair and is seeking to prove it in court, in a test case that could open a can of worms for the banks if the ruling goes against them.In the interim of the case, the Financial Services Authority (FSA) has allowed banks to put all claims for refunds of unauthorised overdraft charges to be put on hold.This means that many people will have wait months or even years to see if they will be refunded.The British Bankers' Association (BBA) issued a statement, saying: "The FSA has agreed to issue a waiver, with immediate effect, to suspend the handling of customer complaints on bank charges pending a decision by the court. "Other banks who are not party to the court action will be applying to the FSA for a waiver and as such will be bound by the outcome of the court case. "Banks believe the fees customers pay for unarranged overdrafts are fair and clear."However, this is clearly an issue where customers, as well as the banks, would welcome legal clarity."Banks will be writing to their customers who have complained about the charges to advise them of the situation and the trial, which will be the first time the banks have taken the risk of directly defending their charges in court.
Share this..
Related stories
Unemployment figures bring markets back down to earth
News that the unemployment figure in the UK has increased to 1.79 million has not been taken well by financial markets. The euphoria of the last few days has all but evaporated with many forecasting that the figure will break through 2 million before Christmas and could possibly peak at 3m next year. We are now at levels not seen since the last recession in 1997 with the jump in the August figur...
Read MoreWhere next for UK base rates?
Despite the fact that many experts, only a few weeks ago, still believed that UK base rates would bottom out at 0% it now appears as though the Bank of England's Monetary Policy Committee (MPC) is set to take a pause this month. It would seem that the introduction of quantitative easing and the apparent threat that inflation could rise substantially in the medium to longer term will see UK base ra...
Read MoreIs the UK government reducing UK competitiveness by increasing taxes?
A survey by accountants MacIntyre Hudson has confirmed that three quarters of businesses in the UK believe that the UK government is seriously risking the short-term recovery in the UK economy because of its punitive tax regime. This particular point has been reiterated by the two pence a litre increase in fuel tax just today which is the latest in a long line of subtle yet very effective tax incr...
Read MoreAlistair Darling believes the worst is over
Alistair Darling, the Chancellor of the Exchequer, is the latest heavyweight to join a growing band of supporters who believe the UK economy is over the worse. Reiterating his view that the UK economy will move back into growth towards the end of 2009 he has been very vocal at the G8 summit of worldwide financial leaders. Slowly but surely there appears to be an improvement in confidence and forec...
Read MoreMillions of UK people suffer from fuel poverty
18/05/2015 Millions of people in the UK are not able to top up their gas and electricity pre-paid meters, leaving them without power or heating, according to research from Debt Advisory Centre. The research showed that a quarter of people are reliant on pre-paid meters in their homes as they have had problems paying their bills in the past. Out of these people, 4 million of them can often no...
Read More