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

[EXC]

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

I would be intrigued by the POC that might produce from the BCOBS angle cos there is unlikely to be much in that to be perfectly honest.

That's because overdraft charges don't fall within the FSA's (and therefore BCOB's) remit. The OFT has sole jurisdiction over overdrafts and any charges relating to them.

''The Financial Services Authority (FSA) will be the new regulator for most aspects of the regime, taking over all retail banking conduct regulation for deposit taking and payment services. The FSA has drawn up Banking Conduct of Business rules and these will sit alongside the PSRs.

However, areas of retail banking which fall outside of the FSA's remit, such as overdrafts and credit card lending, will continue to be regulated under the Consumer Credit Act 1974. The Office of Fair Trading (OFT) has a duty to license and regulate businesses involved in consumer credit activities provided that they satisfy the OFT they are fit to hold a licence.''


Banking conduct regime - The Office of Fair Trading

Not that a small matter like facts would get in the way of JudgeFodder's little Fair Game of encouraging people into court using inapplicable regulations.

He's a menace.

[EXC]

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

''Currently, the Banking Code Standards Board monitors and enforces
voluntary Banking Codes which govern banks’ day-to-day relationships with
their customers. From 1 November 2009, retail banking will be governed primarily
by the FSA with some matters, eg overdraft charges, subject to the
jurisdiction of the Office of Fair Trading (OFT).''

Lexology

[EXC]

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

Bank charges are too complicated

''We asked a group of Which? members to work out the cost of an unauthorised overdraft for four different banks by giving them a mock bank statement. Despite one of the volunteers being a maths PhD student, not one got all the calculations right, only managing to get seven out of 48 correct answers between them.

One volunteer commented: 'Details on rates and charges should be accessible, be in plain English and in a standard format, so that banks can be easily compared. At the moment you need to be both a detective and have a PhD in maths to work out what you may owe'.

Another said: 'I like to think I'm reasonably intelligent, but I couldn't get my head around this information and found it impossible to calculate'......


Which? calls for action on bank overdraft charges - January - 2012 - Which? News

[leclerc]

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

Bank charges are too complicated

''We asked a group of Which? members to work out the cost of an unauthorised overdraft for four different banks by giving them a mock bank statement. Despite one of the volunteers being a maths PhD student, not one got all the calculations right, only managing to get seven out of 48 correct answers between them.

One volunteer commented: 'Details on rates and charges should be accessible, be in plain English and in a standard format, so that banks can be easily compared. At the moment you need to be both a detective and have a PhD in maths to work out what you may owe'.

Another said: 'I like to think I'm reasonably intelligent, but I couldn't get my head around this information and found it impossible to calculate'......


Which? calls for action on bank overdraft charges - January - 2012 - Which? News

BBC Radio Norfolk this morning are having an item on this and I will be speaking live on air this morning c. 10:30am about this report.

[leclerc]

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

BBC iPlayer - Listen live - BBC Radio Norfolk

This is direct to the link to listen live on the tinterweb. The program is Nick Conrad from 9 but the discussion is c.10:30 am

[Smasher]

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

I still don't get how they are allowed to provide an unarranged overdraft, yet refuse an arranged overdraft citing a bad credit score.
Sorry guys, I've been MIA for a while, has this issue been covered?

[leclerc]

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

If they agree to provide an overdraft over the limit then they are authorising it. I do not agree with the supposition that there is any form of "unauthorised overdraft" because that is not the case.

[Smasher]

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

They don't call it "unauthorised" anymore as far as I understand. It's "Unarranged" or "Instant" or something similar that ties in to fit the idea that it is a service..
If an arranged overdraft is refused on account of your credit score, then how can they justify providing an arranged overdraft, often amounting to far more than the originally refused arranged overdraft?

[leclerc]

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

Unarranged is arranged and instant is not in Plain and intelligible language, imho

[EXC]

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

If an arranged overdraft is refused on account of your credit score, then how can they justify providing an arranged overdraft, often amounting to far more than the originally refused arranged overdraft?

I suppose because they have complete discretion as to whether to grant an unauthorised overdraft.

Thing is if they don't and apply an unpaid item fee instead it becomes an unauthorised overdraft anyway.

[Smasher]

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

I was told by HSBC that the decision whether to grant an overdraft, formal or informal (arranged/unarranged) was based on credit score..
I understand that the cost of credit goes up, the lower your rating, but this is not explained when it comes to overdraft fees.

[leclerc]

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

BBC iPlayer - Nick Conrad: Is it right to give The Queen a new yacht?

from 1hour 37 for about 15 minutes......

I did speak to the listener after the show.

[leclerc]

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

NatWest Important Information

This is natwest's important information on their text alert service.
Something on there seems strange and slightly odd as this service is to help avoid unauthorised charges.

So quiz time, which part do you think caught my attention?

[Dougal16T]

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

Morning all,

Was it this bit.....

'We will not be responsible if, for any reason, we are unable to send you an Alert or, for any reason, you do not receive the Alert.'

Best wishes

Dougal

[leclerc]

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

Nope that was definitely not the one as it is fairly obvious, ie phone switched off, battery runs out, change of number and not informing the bank of it, etc, etc,