Re: Negotiating Line for the Consumer Rights Directive on the Concept of Assessabilit
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Comments in blue
Originally posted by EXC
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I don't think the consultation is either all encompassing or discrete. It's clear from the opening paragraph of the Executive Summary that the consultation's main purpose is to deal specifically with bank charges head on.
''The Supreme Court judgement in the OFT v Abbey National plc case in November 2009 held that charges in relation to unauthorised overdrafts were part of the price for the provision of the whole package of banking services received by a personal current account customer, and thus excluded from assessment under legislation on unfair terms in standard form contracts. As a result there is uncertainty as to how UK legislation on unfair terms in consumer contracts applies to charges that are “contingent”, or “ancillary” to the core of the contract. The decision of the Supreme Court has led to calls for the Government to bring forward legislative change, especially to address perceived unfairness in certain bank charges. The Coalition Agreement includes a commitment to “introduce stronger consumer protections, including measures to end unfair bank and financial transaction charges.”
Partially agree on the above but words on paper are fine, we had those from the Gov't during the Test Case and specifically whilst we were awaiting the Supreme Court decision. Didn't help us much then !!
Not quite sure what you mean by ''Why don't we propose that the UK Govt takes a position that clearly details the future nature of PCA's''
What I am a little concerned about is that unless the proposed new European Directive specifically covers PCA's we could basically end up in the same situation as we experienced with the test case, with the banks using the whole package of services argument, when the actual fairness of their charges is challenged in Court.
In our response to the Call for Evidence we will be focussing mainly on the Bank charges aspects. It's surely only one step onward from saying we would like the Govt to negotiate for a European Directive that includes directives in relation to the type of terms contained within PCA contracts to negotiate for a specific stand alone Directive or a section within an all encompassing directive that directly adresses all aspects of PCA's from a Consumer protection viewpoint. Personally I believe that is the approach we should adopt in our response to the BIS.
''The Supreme Court judgement in the OFT v Abbey National plc case in November 2009 held that charges in relation to unauthorised overdrafts were part of the price for the provision of the whole package of banking services received by a personal current account customer, and thus excluded from assessment under legislation on unfair terms in standard form contracts. As a result there is uncertainty as to how UK legislation on unfair terms in consumer contracts applies to charges that are “contingent”, or “ancillary” to the core of the contract. The decision of the Supreme Court has led to calls for the Government to bring forward legislative change, especially to address perceived unfairness in certain bank charges. The Coalition Agreement includes a commitment to “introduce stronger consumer protections, including measures to end unfair bank and financial transaction charges.”
Partially agree on the above but words on paper are fine, we had those from the Gov't during the Test Case and specifically whilst we were awaiting the Supreme Court decision. Didn't help us much then !!
Not quite sure what you mean by ''Why don't we propose that the UK Govt takes a position that clearly details the future nature of PCA's''
What I am a little concerned about is that unless the proposed new European Directive specifically covers PCA's we could basically end up in the same situation as we experienced with the test case, with the banks using the whole package of services argument, when the actual fairness of their charges is challenged in Court.
In our response to the Call for Evidence we will be focussing mainly on the Bank charges aspects. It's surely only one step onward from saying we would like the Govt to negotiate for a European Directive that includes directives in relation to the type of terms contained within PCA contracts to negotiate for a specific stand alone Directive or a section within an all encompassing directive that directly adresses all aspects of PCA's from a Consumer protection viewpoint. Personally I believe that is the approach we should adopt in our response to the BIS.
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