OFT v Banks Judgment 25th November 2009 - 9.45am- Supreme Court - Test case

[natweststaffmember]

Re: OFT v Banks Judgment 25th November 2009 - 9.45am- Supreme Court - Test case

I wonder whether they would go down the US route with regards to the Federal Reserve basically telling banks that customers must opt into the overdraft services or simply have their payments declined.
Article is in the International Issues forum.

[natweststaffmember]

Re: OFT v Banks Judgment 25th November 2009 - 9.45am- Supreme Court - Test case

I want to ask a question that perhaps may be strange on a reclaim bank charges forum; what would happen if the banks are successful in their appeal?

[Budgie]

Re: OFT v Banks Judgment 25th November 2009 - 9.45am- Supreme Court - Test case

I want to ask a question that perhaps may be strange on a reclaim bank charges forum; what would happen if the banks are successful in their appeal?

It's a good question Natty and one that I am surprised has not been asked before.

I have some idea but will delay posting my thoughts until others have done so.
Sometimes it's good not to jump straight in LOL.

Budgie

[Amethyst]

Re: OFT v Banks Judgment 25th November 2009 - 9.45am- Supreme Court - Test case

Well apparently its not a possibility

After the heat. - What are the issues after the OFT victory on bank charges?


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So the campaign has finally succeeded.
Almost four years of challenge and conflict with the banking industry and the main issue on bank charges has been won - but the fall-out is only just beginning.

Maybe they know someething we don't ???????????????

We have considered the Banks winning the appeal and what will happen after, but don't want to jinx the result lol.

[natweststaffmember]

Re: OFT v Banks Judgment 25th November 2009 - 9.45am- Supreme Court - Test case

Well apparently its not a possibility
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Maybe they know someething we don't ???????????????/

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I assume you read on in that article?

I daren't comment any further on that article.

[EXC]

Re: OFT v Banks Judgment 25th November 2009 - 9.45am- Supreme Court - Test case

Maybe they know someething we don't ???????????????

You need look no further than posts 6 & 8 here to know the answer Bank Charge issues Post Test case - Repayment: how will charges be repaid? - The Consumer Forums

[natweststaffmember]

Re: OFT v Banks Judgment 25th November 2009 - 9.45am- Supreme Court - Test case

If the banks' succeed in their appeal would it be the beginning of banks' charging what they like again?

[Amethyst]

Re: OFT v Banks Judgment 25th November 2009 - 9.45am- Supreme Court - Test case

Of course not, we have much more guidance and regulation and the OFT will be looking at charges under competition rules. Can you seriously see RBS upping their £5 to £35 again and consumers standing for it ?

[natweststaffmember]

Re: OFT v Banks Judgment 25th November 2009 - 9.45am- Supreme Court - Test case

I can see it once the government sells its stake in the banks should they win the appeal.

[Budgie]

Re: OFT v Banks Judgment 25th November 2009 - 9.45am- Supreme Court - Test case

If we are going to start discussing the ridiculous theories and ramblings of a clearly misguided, misinformed and disinterested indiviudal who claims to have intimate knowledge of legal proceedings but should really know better than to publicly publish, on occasion, such utter tripe then I'm sorry but I am not going to play anymore.

This site has followed the test case seriously from it's outset, reported factually and critiqued constructively and should continue to do so.

The result will be formally announced next Wednesday.

Whilst a victory for the banks next week would seriously delay progress it would not be the end of the matter.

Irrespective of whether the banks win or lose the appeal the OFT's investigation would continue, if the OFT decide that they wish to continue. The OFT were quite clear about this during the House of Lords appeal. So a victory for the banks next week would not mean the end of the road for Consumers.

The reasons why the OFT would continue with the matter are far to complicated to explain here without posting up page after page of the transcripts. But bear in mind that the banks appeal is based upon a fairly narrow and potentially beneficial ( to them ) interpretation of one paragraph of the regulations. Therefore it is probably simply worth pointing out here that there are many ways in which a particular term of a contract, including a term relating to a charging structure such as that describing a bank charges can be adjudged unfair irrespective of whether that term describes a chargeforms part of the main subject matter of the contract or is related to the price or adequacy of services supplied in exchange.

By far the best outcome would, of course, be for the banks to lose the appeal and I firmly believe that this will be the case.
However, I for one would not be too worried if they didn't.
I have faith in the OFT who I believe would not have embarked upon this whole issue unless they were certain of the eventual outcome and to date have performed their task admirably.

[EXC]

Re: OFT v Banks Judgment 25th November 2009 - 9.45am- Supreme Court - Test case

Of course not, we have much more guidance and regulation and the OFT will be looking at charges under competition rules. Can you seriously see RBS upping their £5 to £35 again and consumers standing for it ?

Dead right and this is why I think the OFT have reserved the charging aspect of the PCA Market Study until after the Supreme Court Judgment.

The OFT are actually principally a competition regulator and in recent months have tightened their working relationship with the Competition Commision and I would imagine a reference to the CC would be on the cards.

[natweststaffmember]

Re: OFT v Banks Judgment 25th November 2009 - 9.45am- Supreme Court - Test case

Do you think that the OFT, should they lose, go as far as what the Federal Reserve in the USA did and ask for people to OPT IN to "overdraft services" rather than being automatically opted in when they have neither agreed or disagreed to it as happens today in the UK?

[Budgie]

Re: OFT v Banks Judgment 25th November 2009 - 9.45am- Supreme Court - Test case

Do you think that the OFT, should they lose, go as far as what the Federal Reserve in the USA did and ask for people to OPT IN to "overdraft services" rather than being automatically opted in when they have neither agreed or disagreed to it as happens today in the UK?

We suggested an OPT IN/OUT scenario as part of the Legal Beagles response to the OFT's PCA report

"6.15. We would urge the OFT to regulate an opt-out system for consumers in respect of the imposition of insufficient funds charges altogether. One of the most serious complaints from consumers is the lack of control over how their account is operated. There would be fewer grounds for complaints, and greater consumer control over their finances, if they had the option not to allow payments to go out of their accounts when there are insufficient funds. Whilst we accept that there may be minor costs associated with such an automatic system, those costs should properly reflect the cost to the banks. It is our experience that consumers would accept such fees, if they were proportionate to the actual costs involved."

[rhysjames250]

Re: OFT v Banks Judgment 25th November 2009 - 9.45am- Supreme Court - Test case

Hi Guys a newbie on here,

Interesting to read this news on the Bank charges case. Quick question. If, IF the OFT does agree that Bank Charges are unfair, and the Banks want to appeal this decision, then won't they have to pay more interest on the bank charges that are on hold, making this worse for themselves. Or they will more than likely appeal to have the ruling overturned.

I hope i make a bit of sense.

Thanks

Rhys

[Amethyst]

Re: OFT v Banks Judgment 25th November 2009 - 9.45am- Supreme Court - Test case

They can't appeal this Judgment as far as I know, only the court can pass it on to the European Courts of Justice. (edit: ahhh sorry misread the question - do you mean if the banks want to fight the OFTs decision on the unfairness in court ? If so then yes interest will keep adding up)

Yes interest continues to incur until repayments are made, whensoever that shall be. Remeber this is only the first part of the test case, the substantive issues have yet to be dealt with.

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