***** Long wait likely for Claimants following OFT announcement... ****

[iancognito]

http://news.bbc.co.uk/1/hi/business/6918140.stm

[Amethyst]

Banks agree to charges test case

Thousands of customers are suing their banks

A number of UK banks, including HSBC, Lloyds TSB, Royal Bank of Scotland and Nationwide, have agreed to go to court in a test case for overdraft charges. Banks have been locked in a long-running battle with consumers over whether or not overdraft fees levied for unauthorised borrowing are legal.
Thousands of customers have been suing their banks for the return of charges.
The large number of claims have clogged up local courts, and banks were criticised for dodging the issue.
However, the Office for Fair Trading (OFT) said that the lenders approached the UK's financial watchdogs in order to sort out the problem and agreed to the test cases in England and Wales, Scotland and Northern Ireland.
The OFT said that on Friday it would commence proceedings in England's High Court for "a declaration on the application of the law in respect of unauthorised overdraft charges".
"The banks do not accept that the unfairness rules of the Unfair Terms in Consumer Contract Regulations apply. The OFT believes that they do and is seeking to establish this legal principle clearly in the court," it added.
"The OFT considers that a quick determination of this point of principle will assist in securing a clear and orderly resolution of the fairness of these charges."
To date, the banks have been reluctant to contest such cases, usually settling out-of-court.
So far no bank has outlined the case for its charges in open court.
If a bank were to do so and lose its argument that the charges were fair, it could lead to many more bank customers getting refunds.
Banks have already had to pay out millions of pounds in refunded bank charges.