OFT may drop test case

[helpmeclaim]

http://news.bbc.co.uk/1/hi/business/6989510.stm



This doesnt seem like good news

The banks say "The eight banks challenging the OFT say it has no jurisdiction in the matter"

This shows they do not want to compromise they want to draw out a long winded court case.

"However, if and when, the judge will not be asked to rule on whether bank charges are legal or fair.



Instead the judge will have to decide whether the OFT has the authority to decide the issue itself, under the Unfair Terms in Consumer Contract Regulations."

This is also crazy whats the point of the test case if it isn't to find out if the charges are legal or not. What is the point of the waiver??? i thought it was to see if the charges are legal or not that is what the OFT have been saying.

Does the POC's say this that it is just to see if the OFT can challenge them or to see if they are legal or not?

MAIN QUESTION

If they do withdraw from the test case because the banks lower there charges what happens to all the ongoing and future claims. will they still be able to get refunds??

[muggins73]

Re: OFT may drop test case

I would have thought so, but in line with whatever charge is deemed as fair and reasonable. But the question is will the OFT and banks actually be able to agree on exactly what level of charging is fair and reasonable?

I pressume the whole business of reclaiming charges will remain undercover, with refunds being given to those of us whom seek them and not universally as it should be.

It'll also be a bit of a bummer though, if the banks lower the charges then decide to charge us an annual fee.

Either way we, the conusmer, will no doubt get stung. After all everyone in the uk gets stitched up in one way or another, why should this be any different!!!!!

[Amethyst]

Re: OFT may drop test case

hmmmmm not convinced yet - the matter needs sorting the court system cant cope with things carrying on as they are.

The OFT has plenty of jursidiction in the matter.

THE OFT are not asking the court to say if charges are fair - they are asking to court to rule that the UTCCR applies so that the OFT can use their powers to deem the terms and level of fees fair or unfair.

[Glenn UK]

Re: OFT may drop test case

Re future claims

Than answer is a resounding yes, all claims can go ahead until a court of law deems otherwise.

Remember the OFT report in April 2006? Credit card charges should be lowered and no action would be taken if the charges were below £12.

However, the OFT specifically stated that only a court could determine ulimately if the charges were fair and not a penalty.

Now tell me which CC companies have stopped paying out the whole charge when a suitable claim has been made?

QED.

Personally the POC from the OFT helps those with bank charges in my view since it is clearly about the UTCCR and does not, and can not IMHO, address the issue of penalties.

For it to address the issue of whether bank charges are penalties they would have to investigate the losses incurred against specific losses incurred by the banks versus what they charge individuals. This is not going to happen.

Chances are the current stay is only a lull not the end. Could possibly be the beginning of something bigger if the OFT do end up getting a judgement against them as to the applicability of the UTCCR.

JMHO

Glenn