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Bank Charges Claims

The office of fair trading announced on Thursday 26th July that it has agreed with seven Banks to take a test to the High Court to establish whether the provisions of the Unfair Terms in Consumer Regulations that deal with unfairness apply to unauthorised overdraft charges. Note most card suppliers charge a £10.00 fee for supplying past statements.
In the light of this agreement with the Financial Ombudsman Service (FOS) has stated it will put on hold its own work on complaints about these charges, pending the outcome of legal proceedings. In it's statement the FOS said that “it is expected that the decision by the ombudsman service to suspend further work on complaints about unauthorised overdraft charges will be reflected by a similar response by the county courts.” The Financial Services Authority (FSA) has announced that banks and other current-account providers can also put cases on hold, pending the “test-case” decision. Once the law has been clarified by this test case, the banks will have to apply the High Court Decision to all complaints they have put on hold.

What this means is that there will be no settlements until after the High Courts Decision.:

The Office of Fair Trading has stated that banks have overcharged in the past for unauthorised overdraft charges and other penalty charges which can result in thousands of pounds being charged to you over the past 6 years. See http://news.bbc.co.uk/1/hi/business/6733361.stm

For further information click here
http://www.oft.gov.uk/news/press/2007/106-07
http://www.financial-ombudsman.org.uk/faq/bank-charges.html
Although there is an agreement not to meet claims until the OFT case has been judged, you should lodge your claim now in order to keep your 6 years of back charges live.

 

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