Barclay’s must stop taking charges from customer until test case complete
October 5, 2007
Barclay’s Bank has been told by a judge that it must stop taking further fees and charges from a customer that has sued the bank for the return of overdraft charges until a landmark test case has gone ahead and legal issues surrounding these bank charges have been sorted out.
The bank cannot apply any further charges against the customer, Nadine Fry, until the High Court test case has gone ahead.
The test case will help banks and regulators to determine what is a fair charge for exceeding overdraft limits after it was deemed last year that the charged that were being applied by banks were unfair and unlawful. As a result many customers have claimed back millions of pounds collectively from their banks.
So far close to £400 million has been repaid in these charges by the UK’s major banks since the beginning of this year, with close to £90 million being repaid by Barclay’s alone this year. Nadine Fry was suing the bank for just over £1300 in unpaid charges, and her case has also been suspended until the test case has been heard.
Depending on the outcome of the test case Barclay’s may be able to claim any charges from Ms Fry after the case has been heard, but cannot apply any up until this time. Nadine Fry’s father was dealing with the claim on behalf of his daughter.
He stated: “I argued that a stay would have serious financial implications for my daughter as she would have to continue meeting interest payments on her debts, whereas the sum in question would have been sufficient to clear her debt entirely.”
Alan Wright
5th September 2007
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I had the same problem with Barclays - went overdrawn by £12 and they ended up charging me over £50 for the privelege.
I think that it would be cheaper being with the provident!