Banks told to call off the dogs in overdraft charges scandal

[ROBSTER]

Here you go:

http://www.dailymail.co.uk/money/art...s-scandal.html

Heard it before but well done marc for keeping it in the public domain.

[Paule]

Re: Banks told to call off the dogs in overdraft charges scandal

Consumer campaigners want the Financial Services Authority (FSA) to crackdown on banks who have sent in debt collectors after customers who have disputed unfair overdraft charges.

These customers have had their complaints shelved for two years by the banks because of a waiver authorised by the FSA.

This waiver has left thousands of current account customers who disputed rip-off bank charges stuck in limbo, while racking up fees and interest.

Some are being chased through the courts, hounded by debt collectors and are having black marks put on their credit history.

The waiver was put in place by the FSA on July 27, 2007. Initially, it was for just 12 months while a court case between the banks and the Office of Fair Trading (OFT) was argued.

However, almost two years later, this case is still being fought, despite High Court and Appeal Court judges ruling the OFT can decide on whether bank charges are a breach of unfair contract terms.

Next Tuesday will see the latest twist in the saga as the banks take their case to the House of Lords. The result of this is not likely to be known for several months at best. This will pile on the misery for customers who have racked up thousands of pounds worth of charges, which they claim had sent them massively overdrawn.

Marc Gander, from the Consumer Action Group, says: 'It is the banks that sought the shelter of the FSA and wanted the waiver to be placed on complaints and it is the banks who wanted to contest the charges in the court and get a legal ruling on them.

'It is unacceptable that they should be involved in litigation against their customers and chasing them for charges that are in dispute when they have acknowledged there has been no decision on whether the charges are lawful.' Banks have to resolve cases where there is financial hardship.

Under the terms of the waiver, banks can still look at complaints, but they choose not to.

The British Bankers' Association insists it is within its rights to pursue customers who have not repaid debts.

[Amethyst]

Re: Banks told to call off the dogs in overdraft charges scandal

Yep agree 100%