Delay over bank charges verdict

 

April 26, 2008

According to a recent report the verdict over unfair bank charges, which were the subject of a test case in the High Court in January, has been delayed for a further three months. After the test case the presiding judge stated that he needed time to consider all of the facts and evidence before making a decision, and it was hoped that the decision would be delivered in April. However, reports state that the decision is being further delayed by three months, which means that the banks, consumers, and the Office of Fair Trading, which brought the case, will have to wait for the decision.

The report also stated that in the event that banks lose the case many may not be able to work out exactly how much they owe their customers, as there will no longer be full records that go back six years. What is known is that there could be billions of pounds worth of customers refunds to be issues if banks are ordered to cut their charges to a more reasonable level, and compensate customers for past charges.

There are many test cases still pending in the courts after it was decided that the matter would have to go to court last summer. Prior to this decision banks had been refunding most customers, with refunds on charges going back up to six years. However, all claims were put on hold after it was decided that the matter would have to be resolved in court.

The Office of Fair Trading said that the charges imposed by banks for unauthorised overdrafts and bounced cheques were unfair and unlawful because the charges were way higher than the cost incurred be the banks. After this was announced many banking customers contacted their banks to get refunds on charges going back up to six years.

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Written by admin · Filed Under Banking 

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