UK banks continue to fight charges case
While it has very much been pushed into the background of late it has been announced that the major UK banks are set to fight the crucial ruling on overdraft charges which occurred earlier this year. They are currently going to appeal having suggested that the earlier ruling was floored and the OFT is not legally able to implement price restraints under current regulations.
The whole case hinges on the fact that the OFT believes that the charging structure for the UK banking system is very much out of line with the cost of such breaches as unauthorised extension of an overdraft. However, the situation has been complicated by the fact that many banks have paid out millions of pounds in compensation over the last couple of years, prior to the official ruling. The thinking was that if the banks paid out the early compensation claims in full the situation would die down and go away, but it has not.
It will be interesting to see which way the appeal ruling goes as funds have never been tighter for both the banking industry and the UK consumer. A welcome lift for either side in the near future would be well received, but who will eventually come out on top?
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