Bank charge decision to be brought forward
May 12, 2008
The decision relating to bank charges following the high court test case in January has been long awaited. However, many people were disappointed following the case after the presiding judge said that he needed some time to consider the facts before coming to a decision. Earlier this month it was reported that a verdict had still not been reached, and that the judge needed a further three months to consider the evidence, which meant that the verdict would not be made available until July.
However, it has now been revealed by the Office of Fair Trading that the verdict may actually be made available as early as Thursday of this week. The test case was actually brought by the Office of Fair Trading, which claimed that bank charges for unauthorised overdrafts and bounced cheques were unfair and unlawful, as they did not reflect the lower cost incurred by the banks – some banks were charging in excess of £35 per fee.
The verdict regarding the test case will determine whether the Office of Fair Trading has the right to assess the fairness of banks’ terms and conditions, which includes bank charges. OFT officials have said that once the verdict comes through, and if it is in the OFT’s favour, then the watchdog will decide on what course of action to take next.
Banks have already paid out hundreds of millions of pounds in reclaimed bank charges to customers that have made claims going back up to six years. Many claims that were going through the courts were put on hold following the decision to have a test case. However, depending on which way the verdict goes banks could end up paying billions of pounds more to consumers in bank charges.
Recent additions:
- Officials claim building societies looking healthy
- Bank charges verdict delayed until July
- Delay over bank charges verdict
- There could be good news for savers
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