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Dan Atkinson, Mail on Sunday
30 March 2008
The crucial ruling on the legality of bank overdraft fees has been delayed by three months.
With billions of pounds of potential customer refunds in the balance, the verdict, hoped for next month, will not be delivered until July.
It has emerged that should the banking industry lose the case, some banks may be unable to calculate what they owe their customers because full office records stretching back six years will not exist.
That will cause a big headache if the banks are ordered to cut past and present charges to a level where they simply reflect the cost to them of an unauthorised overdraft.
With no way of working out the costs caused by overdrafts in years gone by, banks may be forced to offer more generous refunds than the ruling requires, according to a top industry source.
The delay in a ruling from the High Court case means a wait for what are thought to be hundreds of individual lawsuits from customers aggrieved over 'excessive charges'. Other stories:
A £60 overdraft could cost £133
Overdraft squeeze pinches
Pay back your overdraft
95p turned into £250 debt
Dan Atkinson, Mail on Sunday
30 March 2008
The crucial ruling on the legality of bank overdraft fees has been delayed by three months.
With billions of pounds of potential customer refunds in the balance, the verdict, hoped for next month, will not be delivered until July.
It has emerged that should the banking industry lose the case, some banks may be unable to calculate what they owe their customers because full office records stretching back six years will not exist.
That will cause a big headache if the banks are ordered to cut past and present charges to a level where they simply reflect the cost to them of an unauthorised overdraft.
With no way of working out the costs caused by overdrafts in years gone by, banks may be forced to offer more generous refunds than the ruling requires, according to a top industry source.
The delay in a ruling from the High Court case means a wait for what are thought to be hundreds of individual lawsuits from customers aggrieved over 'excessive charges'. Other stories:
A £60 overdraft could cost £133
Overdraft squeeze pinches
Pay back your overdraft
95p turned into £250 debt
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