Tweet
On 26 February 2009, the Court of Appeal (CA) held that the banks' charges can be assessed for fairness. The Court of Appeal declined the banks’ request to appeal this decision to the House of Lords. The banks will now apply to the House of Lords directly for permission to appeal.
Further Court hearings will be needed before the test case process is concluded.
As previously agreed with the FSA and the Financial Ombudsman Service, customer complaints relating to unarranged overdraft charges will currently remain on hold. The banks will continue to ask County (England and Wales) and Sheriff (Scotland) Courts to keep cases relating to unarranged overdraft charges on hold until the test case process is concluded.
What happens next?
The Court of Appeal declined the banks’ request to appeal the decision of 26 February 2009 to the House of Lords. The banks will now apply to the House of Lords directly for permission to appeal.
This appeal is required because:
• the CA said it had some hesitation in reaching its decision. This shows that the issue is difficult and complex;
• we don’t think the rationale given by the CA for their decision is correct;
• the reasoning in the judgment is difficult to apply in practice so it’s important to get certainty and clarity for both the industry and customers;
• the UTCCR haven’t been properly tested in the UK before. So it’s important for both the industry and customers that these issues are fully tested and understood.
The court hasn’t yet decided that the charges are actually unfair. This means there will be more court hearings before the test case process is concluded.
As previously agreed with the Financial Ombudsman Service and FSA, customer complaints relating to unarranged overdraft charges will remain on hold. We will continue to ask County and Sheriff Courts to keep legal cases relating to unplanned overdraft charges on hold until the test case process is concluded.
We will continue to post updates on our website to keep you up to date about the progress of the test case.
Why are the banks appealing?
A further appeal is required because:
Lloyds TSB - Answers to questions on bank charges
Further Court hearings will be needed before the test case process is concluded.
As previously agreed with the FSA and the Financial Ombudsman Service, customer complaints relating to unarranged overdraft charges will currently remain on hold. The banks will continue to ask County (England and Wales) and Sheriff (Scotland) Courts to keep cases relating to unarranged overdraft charges on hold until the test case process is concluded.
What happens next?
The Court of Appeal declined the banks’ request to appeal the decision of 26 February 2009 to the House of Lords. The banks will now apply to the House of Lords directly for permission to appeal.
This appeal is required because:
• the CA said it had some hesitation in reaching its decision. This shows that the issue is difficult and complex;
• we don’t think the rationale given by the CA for their decision is correct;
• the reasoning in the judgment is difficult to apply in practice so it’s important to get certainty and clarity for both the industry and customers;
• the UTCCR haven’t been properly tested in the UK before. So it’s important for both the industry and customers that these issues are fully tested and understood.
The court hasn’t yet decided that the charges are actually unfair. This means there will be more court hearings before the test case process is concluded.
As previously agreed with the Financial Ombudsman Service and FSA, customer complaints relating to unarranged overdraft charges will remain on hold. We will continue to ask County and Sheriff Courts to keep legal cases relating to unplanned overdraft charges on hold until the test case process is concluded.
We will continue to post updates on our website to keep you up to date about the progress of the test case.
Why are the banks appealing?
A further appeal is required because:
- the CA said it had some hesitation in reaching its decision. This shows that the issue is difficult and complex;
- we do not think the rationale given by the CA for their decision is correct;
- the reasoning in the judgment is difficult to apply in practice so it is important to get certainty and clarity for banks and customers alike; and
- the UTCCR have not been properly tested in the UK before, therefore it is important for both consumers and industry that these issues are fully tested and understood.
Lloyds TSB - Answers to questions on bank charges
