Our thoughts on the bank charges situation....

[Amethyst]

The Office of Fair Trading has this morning announced it has no plans to continue fighting for historical bank charges refunds through the courts. Although we are disappointed, it has put the ball back in the consumers court and the frustrations of waiting for the OFT and regulators to make decisions affecting us all should now be behind us. At the very least 1.2 million people have been waiting for this decision and can now decide how to move forwards.

The OFT, speaking to Legal Beagles this morning, have said they currently have no plans to refer any issues to the Competition Commission as it would take upwards of 3 years to come to any conclusion and wouldn't necessarily result in any redress for consumers.

They have thanked Legal Beagles members for their input into the process and hope to continue working with us in the future to ensure the consumers view is taken into account. They have passed our submissions on to their counsel and it has all been taken into account when making the decision.

They now appear to be totally focused upon future change. Refunds of historical charges however will now be left to Consumers to fight on an individual basis. We agree with this as the arguments under the Consumer Credit Act and UTCCR 5(1), as well as under misrepresentation, will focus on individuals circumstances.

We do not believe there is any simple all encompassing argument for claimants who wish to continue claims in court. We expect the banks to put everything they can behind the first defences on the improved arguments. For this reason we do NOT recommend anyone who isnt already in the courts system enters a claim. We will assist wheresoever we are able in forming individuals cases, however we must make claimants fully aware of the risks involved in terms of costs and the sheer work involved in putting forward your case.

We have set up forums for help with cases in court, and those with the FOS and Banks complaints system:-

Bank Charge Claims in Courts System - next steps - Legal Beagles

and

Banks Charges complaints with Financial Ombudsman or Banks - next steps - Legal Beagles

and although it may be slow going for a while we shall have detailed guidance to claimants within the next few days.

We have posted very brief guidance as to claimants options now:- OFT drop case - What are the options for consumers with charges claims ? - Legal Beagles with regards historical charges action.

If you are in hardship please please post in the hardship forum for help.

We are still looking into the possibility's of a representative action, which, much as the CCA Test cases, will take individuals claims covering a number of different points together and hopefully create precedents to assist the county courts in their decisions.

The OFT have also indicated that they may be able to give opinion to the court in individual/class actions that are formed on the basis of the CCA Unfair Relationships.

Legal Beagles have now entered a Freedom of Information request to obtain all documents from the OFT regarding the test case and decision making process. These documents we consider no longer need to be hidden as there is no longer legal action being taken. This will take a while to get but should assist us in helping individuals with further action.

The OFT will now focus on the future fairness of the personal current account market and have asked for our help with this. They need to know consumers opinions. We already know they DO listen to consumers and they have used a lot of Beagles members views in their interim PCA Market Study Report.

They would like us to update the report and we have started working on this Personal Current Account Market Study - OFT - updating our response - OPEN - Legal Beagles . PLEASE give us your input into this, and the other consultations. It is the best way to get your voice heard.


It has been a long journey, many of us have been involved in the bank charges campaign since late 2005 / early 2006 and have already obtained 'goodwill' refunds from the banks. We have seen the pain these charges cause people and the sheer ignorance and lack of consideration the banks have offered. We will continue fighting for justice for consumers who have been affected by the charges because we strongly believe the banks should not be able to get away with causing so much misery to so many people over so many years.

Happy Christmas

Ame
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[Centium5000]

Re: Our thoughts on the bank charges situation....

A great post Ame.

As a result of the OFT consultation, we now have a large arsenal of reasons why the charges are unfair, and ones that don't rely on the excessive nature of them.

The FOS, which only deals on an individual basis, should be receptive to these when considering our complaints - the quantity and quality of the arguments should give them the scope to uphold in our favour.

Also, as many of the arguments are in as yet uncharted territory for the banks, I would expect them to be reluctant to challenge them individually in court and risk a precedent.

Still, as Ame points out above, going to court does carry a lot of risk so the FOS route is likely the best option for most.

The main thing is, let's not be downbeat. The banks would love 1.2 million complaints to go away as a downbeat public go back to Christmas shopping.

We've reasons to be positive, pages of them. Thanks LB!

Merry-almost-Christmas to you all.

[Budgie]

Re: OFT drop case - What are the options for consumers with charges claims ?

Personally speaking, I am far from disappointed with today's news.

It just puts us all back in the reclaiming position that we were in nearly 2 1/2 years ago. The only thing legally that has happened during that time is a Supreme Court judgment that precludes the assessment of relevant charges for fairness from the price angle and the small matter of a High Court ruling that the relevant terms are not capable of being penal. A lot of you know my views on the latter situation in that I feel that the issue is wide open for resurrection as part of the misrepresentation, common law mistake argument. We have learned an awful lot in the last two years and are now much more educated and experienced and capable of pursuing this matter through to a successful conclusion. And we will !!

In the last two years Legal Beagles has grown beyond all recognition, we are now one of the most respected Consumer websites in the UK and have forged strong links with the OFT who confirmed today that they wish to continue to develop our relationship and that they value the input we are able to provide. That input comes directly from Legal Beagles users and we hope that will continue to be the case. No other Consumer Group has that type of relationship with the OFT.

Just because the OFT have decided not to continue doesn't mean that the relevant terms are fair !! Far from it, I wholly echo Nattie's words a couple of posts previously. A full read of the OFT's decision document paints an exceptionally bright picture for the future. Ignore the rubbish in the media, 99% of the media commentators have no idea what the whole bank charges debate is really about.

It is going to be a long uphill battle, but hey, it was always going to be that anyway. At least now, for the moment, we are back in charge of our own destiny and the Banks, whilst perhaps crowing a little today, will be quaking in their boots come the New Year. They know that Consumers, will not just give up.

I would like to take this opportunity to publicly thank Amethyst for all of her hard work, not just today but especially over the last few months. It is not easy for someone with a young family to devote so much of their free time to help and advise others. Amethyst does this day in and day out and with no ulterior motive. She is selfless in this task and exceptionally good at what she does. Many others provide help and assistance behind the scenes here on Legal Beagles and those people also deserve a vote of thanks, but Amethyst is the heart of the site and without her there would be no Legal Beagles. I hope you will all join with me in thanking her for her devotion.

Just remains for me to Wish everyone a Merry Christmas and a Happy, Prosperous 2010. resents3:

Remember that you might be expecting a little bit of stuffing on Xmas day, but the Banks will be receiving a whole lot more through 2010.