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

[TUTTSI]

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

Shame it did not cover more banks, but very interesting.

[Curlyben]

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

So while the actual price or remuneration for this "service" doesn't fall under UTCCR the mechanism clearly does ..
That would be the same mechanics employed by ALL of the banks..

Think I'll go back to bark up different trees

[TUTTSI]

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

what does this mean for the consumer?

[EXC]

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

what does this mean for the consumer?

Probably not much as it can't be an issue that crops up too much. And I'd think you'd have to demonstrate that the terms had a material effect in their unfairness to be able to claim on it.

[Dougal16T]

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

Good evening all

Does this ease open the gate a bit further to claims for Unfair Relationships I wonder, especially in view of the wording of the Supreme Court Judgement?

Best wishes to all,

Dougal

[leclerc]

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

I think I need to point out that it cover telephone and/or fax indemnities with regards to giving instructions to a bank to transfer funds either between account/overseas and CHAPS.

There are very few indemnities held within the bank to be honest, so whilst its interesting it has very little to do with bank charges.

[leclerc]

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

High Street bank accounts `may charge within five years`
By Joel Stanier
18 March 2011
UK retail banks may start charging for current accounts within the next five years, according to KPMG.

Clampdowns on overdraft fees and other charges, as well as low interest rates, have reduced the money bank account providers can make on current accounts - and it is thought that they may start charging a regular fee as a result.

David Sayer, head of retail banking at KPMG, said: "The nature of retail banking has flipped on its head. We currently have a situation where mortgages are the most profitable products for retail banks. The loss of revenues from overdraft fees and lower interest rates creates further pressure for a return to charging."

A bank accounts expert at Think Money said: "While in some other countries it`s quite common to pay for a bank account, most current accounts in the UK are still free - with banks making money from interest and charges.

"However, there are already some UK bank accounts that charge, and most offer benefits that aren`t available on your average current account - things like free insurance or a personalised budgeting service. Some people find these benefits are well worth the additional cost."

High Street bank accounts `may charge within five years`
Clearly they haven't heard of packaged accounts

[EXC]

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

According to RBS, quoting a Consumer Focus report, this is how 'free if in credit' banking started.

33. Consumer Focus’ report "Free or Fee: Are ‘free’ products good for consumers?" describes the drivers that led to ‘free’ services as well as some of the consequences. It was intense competition in the market following the introduction by Midland Bank of "free-if-in-credit" in 1984 that led all other banks to swiftly follow suit (Midland gained approximately 450,000 customers in the year following the introduction of this pricing structure while NatWest lost 60,000 current account customers and estimated that it had lost a further 100,000 potential customers with no previous bank account to competitors that had adopted this pricing model). Competitive pressures also mean that it would be commercially difficult for a bank, as a first mover, to start charging for hitherto free services.

Competition and choice in the banking sector

[EXC]

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

''The Scottish Legal Aid Board have granted full civil legal aid certificates in the cases of Sharp v. Bank of Scotland plc and Reid v. Clydesdale Bank plc. This will enable Govan Law Centre to argue that the overdraft charges applied to our clients' current accounts were unfair in relation to s.140A of the Consumer Credit Act 1974, as amended, and separately, regulation 5 of the Unfair Terms in Consumer Contract Regulations (on grounds excluding price in relation to the UTCCR as per the decision of the UK Supreme Court in OFT v. Abbey National plc and others).''

Govan Law Centre

[leclerc]

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

http://www.focusonfinance.org.uk/Paper_3.pdf

That is the consumer focus paper quoted in post 1358

[cappo]

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

High Street bank accounts `may charge within five years`
By Joel Stanier
18 March 2011
UK retail banks may start charging for current accounts within the next five years, according to KPMG.

Clampdowns on overdraft fees and other charges, as well as low interest rates, have reduced the money bank account providers can make on current accounts - and it is thought that they may start charging a regular fee as a result.

David Sayer, head of retail banking at KPMG, said: "The nature of retail banking has flipped on its head. We currently have a situation where mortgages are the most profitable products for retail banks. The loss of revenues from overdraft fees and lower interest rates creates further pressure for a return to charging."

A bank accounts expert at Think Money said: "While in some other countries it`s quite common to pay for a bank account, most current accounts in the UK are still free - with banks making money from interest and charges.

"However, there are already some UK bank accounts that charge, and most offer benefits that aren`t available on your average current account - things like free insurance or a personalised budgeting service. Some people find these benefits are well worth the additional cost."

High Street bank accounts `may charge within five years`
Clearly they haven't heard of packaged accounts

norwich and peterborough charge a fee for bank accounts now nattie and nationwide i know they are building societys not banks but this is how it will start.

[leclerc]

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

norwich and peterborough charge a fee for bank accounts now nattie and nationwide i know they are building societys not banks but this is how it will start.

Gold Classic Current Account | Bank Accounts | N&P | Norwich and Peterborough Building Society

Since when did N&P charge a fee for having an account?

"The Gold Classic Current Account comes with no monthly fee, providing you use the account as intended by transferring £500 or more each month and you don't go overdrawn or try to make a payment that would take you overdrawn. Using an approved / unapproved overdraft will result in a usage charge - see breakdown below."

Gotta say that Nationwide appear to have no fee free account but will look more tomorrow with that regards.

[ncf355]

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

''The Scottish Legal Aid Board have granted full civil legal aid certificates in the cases of Sharp v. Bank of Scotland plc and Reid v. Clydesdale Bank plc. This will enable Govan Law Centre to argue that the overdraft charges applied to our clients' current accounts were unfair in relation to s.140A of the Consumer Credit Act 1974, as amended, and separately, regulation 5 of the Unfair Terms in Consumer Contract Regulations (on grounds excluding price in relation to the UTCCR as per the decision of the UK Supreme Court in OFT v. Abbey National plc and others).''

Govan Law Centre

Aha

:beagle:

Now that looks like some good news at last

Cheers for the update Exc

[EXC]

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

oooh this looks good.



Banking
As part of our ongoing consumer protection
strategy, we will continue to closely monitor
firms’ compliance with the Banking Conduct
Regime. In 2011/12 we will focus on payment
ordering and speed of transfers.

Payment ordering is the sequence in which
banks process payments into and out of
customers’ accounts. If payments going out of
accounts are prioritised over those going into
accounts, some customers may inadvertently
find themselves tipping into an overdraft at some
point during the business day – consequently
being charged for this by their bank – and then
going back into credit once payments into their
account have been processed. We intend to look
at whether such practices by firms are consistent
with their obligations to treat customers fairly.

From 1 January 2012, all payments must be
made by closing time on the next business day
after a payment instruction is made. Compliance
with this rule will require all accounts in both
the sending bank and the receiving bank to be
reachable by a faster payments service. During
2011, we will closely monitor firms’ capabilities
in this area, reminding them of the deadline and
encouraging IT upgrades where necessary.

http://www.fsa.gov.uk/pubs/plan/pb2011_12.pdf

[MIKE770]

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

oooh this looks good.



Banking
As part of our ongoing consumer protection
strategy, we will continue to closely monitor
firms’ compliance with the Banking Conduct
Regime. In 2011/12 we will focus on payment
ordering and speed of transfers.

Payment ordering is the sequence in which
banks process payments into and out of
customers’ accounts. If payments going out of
accounts are prioritised over those going into
accounts, some customers may inadvertently
find themselves tipping into an overdraft at some
point during the business day – consequently
being charged for this by their bank – and then
going back into credit once payments into their
account have been processed. We intend to look
at whether such practices by firms are consistent
with their obligations to treat customers fairly.

From 1 January 2012, all payments must be
made by closing time on the next business day
after a payment instruction is made. Compliance
with this rule will require all accounts in both
the sending bank and the receiving bank to be
reachable by a faster payments service. During
2011, we will closely monitor firms’ capabilities
in this area, reminding them of the deadline and
encouraging IT upgrades where necessary.

http://www.fsa.gov.uk/pubs/plan/pb2011_12.pdf

Hooray somebody has finally listened to what I have been complaining about/trying to get answers from Banks MPs Etc..:beagle::yield:opcorn: