Banks told ''charges unfair'' says MM

[EXC]

http://www.ft.com/cms/s/0/60734ff0-69a3-11dd-91bd-0000779fd18c.html



Overdraft fees 'unfair', says OFT

By Megan Murphy

Published: August 14 2008 03:00 | Last updated: August 14 2008 03:00



The Office of Fair Trading has told leading retail banks that it believes the fees levied on customers who exceed their agreed overdraft limits are unfair.
The OFT has sent letters to eight high street lenders, including HSBC and Royal Bank of Scotland, setting out its preliminary views in connection with a High Court test case, that is scheduled to resume next month, over the fairness of overdraft charges.

The agency said that the correspondence was designed to "start a dialogue" with each bank and to identify which of its findings are contested. "No bank's terms have been given a clean bill of health and all banks remain under investigation," an OFT spokesman said.

Megan Murphy


Copyright The Financial Times Limited 2008

[Amethyst]

Re: Banks told ''charges unfair'' says MM

Lovely jubbly


I hope these letters, and the report that went to the court, are published at some point

[EXC]

Re: Banks told ''charges unfair'' says MM

I wouldn't get too excited. I think the story is simply based on assumption myself. The quotes that she said came from a 'spokesman' are word for word the same text as in the Aug Q&As which I know are always written by a certain K Farrow - a woman.

She may have had some kind of tip off though I doubt it came from the OFT but lets hope she's right. I very much doubt the letters will be ever be published.

[Amethyst]

Re: Banks told ''charges unfair'' says MM

"No bank's terms have been given a clean bill of health and all banks remain under investigation,"


That sentence does mean

''The Office of Fair Trading has told leading retail banks that it believes the fees levied on customers who exceed their agreed overdraft limits are unfair.''


so its not a huge assumption in my book..... at least one of every banks' terms has been deemed unfair - else Kate could not have put out an official Q&A document stating that ''No bank's terms have been given a clean bill of health"

Or am i over simplifying matters ?

[EXC]

Re: Banks told ''charges unfair'' says MM

What I mean is the 'story' implies that the OFT told MM that they wrote to the banks saying the charges were unfair which is extremely unlikely. She has based the story on the Q&Ss and an assumption - albeit one that no one would argue with.

[Amethyst]

Re: Banks told ''charges unfair'' says MM

ahhhh aye okay agree with you on that one....

[Amethyst]

Re: Banks told ''charges unfair'' says MM

The OFT has told RBS and all the banks involved in the OFT test case that it has "serious concerns" that the terms maybe unfair. - from RBS xxx

[EXC]

Re: Banks told ''charges unfair'' says MM

Whacko. Could you e-mail me a copy for TB?

[EXC]

Re: Banks told ''charges unfair'' says MM

Teaser!

[breeze1996]

Re: Banks told ''charges unfair'' says MM

http://www.oft.gov.uk/shared_oft/per...ksqa140808.pdf

It says in this document they wote to all the banks except Barclays.

It would be about the 2nd week of August as that is when this FAQ was published.

It's on page 6 Point 5.

Hope this helps.

The appeal will start on 28 October at the Royal Courts of Justice, Strand, London, WC2

[Paule]

Re: Banks told ''charges unfair'' says MM

http://www.oft.gov.uk/shared_oft/per...ksqa140808.pdf

It says in this document they wote to all the banks except Barclays.

It would be about the 2nd week of August as that is when this FAQ was published.

It's on page 6 Point 5.

Hope this helps.

The appeal will start on 28 October at the Royal Courts of Justice, Strand, London, WC2

5. When will there be a decision on fairness?
We are continuing to progress our investigation as quickly as possible. In mid-August, we wrote to each of the test case banks setting out our approach to the assessment of fairness and (except for Barclays where a view on incoming terms will come later) provisional views as to the unfairness of particular terms and conditions that impose charges.
At this stage, no bank's terms have been given a clean bill of health and all banks remain under investigation. The purpose of the letters is to start a dialogue with each bank to enable us to reach final conclusions as to whether the terms are unfair, and to identify which issues may need to be resolved in court proceedings (as envisaged in the litigation agreement between the OFT, FSA and banks).

File attached for those who cant open the link

[Amethyst]

Re: Banks told ''charges unfair'' says MM

Quote from RBS - 15th August




''The OFT has written to the test case banks with its preliminary views on the fairness of administration terms. It has told RBS that it has 'serious concerns' that the terms may be unfair. RBS is considering its response. This is a key step towards phase 2 of the Test Case, which is not due to start until early 2009''

[Mr Muffet]

Re: Banks told ''charges unfair'' says MM

Is there a copy of the letter the OFT wrote to the banks in 2008, please ?