Bank charges for unauthorised overdrafts are subject to regulation

[Paule]

Bank charges for unauthorised overdrafts are subject to regulation by the Office of Fair Trading under "unfair contract" rules, the Court of Appeal has ruled.

Appeal judges upheld a High Court decision last April that the fees charged to personal
current account customers are subject to regulation by the watchdog.

The ruling came in a test case brought by the OFT and major high street banks.

The banks argued that the charges were exempt from the 1999 Unfair Terms in Consumer Contracts Regulations.

They insisted the fees were legitimate "remuneration for goods and services supplied" to customers in the form of overdraft facilities.

The banks are now expected to apply to the Law Lords for permission to appeal to the House of Lords.

The appeal judges advised that, pending a decision from the Lords and the outcome of any OFT investigation into the fairness of the charges, thousands of County Court claims launched by disgruntled customers seeking refunds should remain on hold.

Bank Charges For Unauthorised Overdrafts | Politics | Sky News

[TANZARELLI]

Re: Bank charges for unauthorised overdrafts are subject to regulation

Banks lose appeal case in charges battle

Alan O'Sullivan, This is Money
Created 25 February 2009 | Updated 26 February 2009
Reader comments (7) | Chat | Vote | Guide

The High Court has ruled in favour of the Office of Fair Trading (OFT) today by announcing it can assess bank charges for fairness.
Are we there yet? Either side of the case can ask for leave to appeal, meaning further delays.





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The ruling is in response to an appeal by the eight High Street banks at the centre of the case.

It is unclear at present whether the banks intend on taking their case to the House of Lords to attempt to have the decision overturned.
Either way, consumers will not be able to reclaim their bank charges until the OFT delivers its final assessment on whether the charges are fair.
The OFT has said it will be making a statement on its victory in the appeal case later today.
If the banks do not appeal, the earliest this can happen is later into 2009.
This is Money will update readers on the latest bank charges case news as more emerges throughout the day.
Bank charges decision imminent
Published 25 February 2009
The High Court is due to give its verdict on Thursday on the appeal made by eight High Street banks against its ruling on bank charges last year.
The appeal case, started in October of last year, is an attempt by the banks to overturn the decision made by the Court that punitive bank charges can be assessed for fairness by the Office of Fair Trading (OFT). If the banks lose the appeal, bank customers will not be able to reclaim their charges immediately, but the OFT will have the green light to assess bank charges for fairness under the Unfair Terms in Consumer Contract (UTCCR) regulations.
If they find the charges are unfair, customers should then be able to reclaim from their bank, this follows a hold put on reclaiming since the case was announced in summer 2007.
If the banks win, it could spell the end of the entire consumer battle to reclaim billions in unfair bank charges.
That is if both parties decide not to appeal the decision yet again, however.

The appeal case, started in October of last year, is an attempt by the banks to overturn the decision made by the Court that punitive bank charges can be assessed for fairness by the Office of Fair Trading (OFT).
It gives the OFT the green light to assess bank charges for fairness under the Unfair Terms in Consumer Contract (UTCCR) regulations. If it finds the charges are unfair, customers should then be able to reclaim from their bank, this follows a hold put on reclaiming since the case was announced in summer 2007.

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