Banks view on the test case

[Amethyst]

ABBEY

Bank charges


Update on OFT test case – January 16 2008
On 27 July, the Office of Fair Trading (OFT), Abbey and six other UK banks and a building society started a court case to decide on the legality of unauthorised overdraft charges. The first part of the court case is due to be heard by the Court on 16 January 2008. The aim of the hearing is to decide certain preliminary issues of legal principle and is expected to take three weeks, with judgement to be handed down sometime afterwards.
This is the first part of the test case. At this time it is too soon to give any exact timescales for its conclusion but we expect it to continue for more than a year. Abbey has agreed with the OFT and the Financial Services Authority (FSA) to conduct the case in an efficient, prompt and orderly way.
Until the final outcome of the test case, the situation regarding how Abbey handles customers’ claims and complaints about unauthorised overdraft fees will remain unchanged unless circumstances change. In keeping with the agreement with the OFT and FSA, Abbey will make sure that customers are updated when there are any significant developments.
What is happening?
On 27 July, the OFT, Abbey and six other UK banks and a building society started a court case to decide on the legality of unauthorised personal overdraft charges. The British Bankers’ Association made a statement on behalf of the banks involved. You can read this statement at www.bba.org.uk
This case is called a "test case" because the decision will clarify the law in this area and is likely to apply to all current and new claims against current account providers about unauthorised overdraft charges.
We will continue to post updates on our website to keep customers informed of progress on the test case as it could run for at least a year.
What will happen to customer complaints about unauthorised overdraft charges?
Like most banks and building societies, we will not be dealing with or resolving customer complaints on unauthorised overdraft charges while the test case is running.
If you do complain about your unauthorised overdraft charges, we will write to tell you that we have received your complaint and that we will record it on your file. When a final decision is reached in the test case, we will contact you as soon as possible to tell you how we will resolve your complaint. We will apply the decision in the court case to all complaints we receive.
Why are the banks allowed to stop dealing with unauthorised overdraft charge complaints during the test case?
We applied to FSA for a suspension of the normal timetable for dealing with unauthorised overdraft charge complaints. The FSA decided that, in the circumstances it was appropriate to grant us a suspension of our obligations under the FSA's complaint handling rules while we sought legal certainty on this issue. The suspension is subject to a series of conditions designed to protect customers' rights. You can read the form of the FSA suspension here: www.fsa.gov.uk
All customers who have made a written complaint on unauthorised overdraft charges but who have not yet had their complaint resolved will receive a letter to explain the position with respect to their complaint.
Can I make a court claim for a refund during the test case?
Yes, but we will apply to the court to put your case on hold while the test case is running. This is because the issues being raised in customer complaints on unauthorised overdraft charges are being considered in the test case.
Can I complain to the Financial Ombudsman Service about my bank charges?
The Financial Ombudsman Service (FOS) has decided not to review complaints while the test case is running. If you do complain to FOS, you will receive a letter explaining that.
What if I have already been made an offer?
We will stand by any offer to settle a complaint or court claim that we have already made to our customers. If you have received an offer to settle from us, we will be writing to you again shortly. Our letter will explain that customers have two months to decide whether to refuse our offer and wait for the decision in the test case. If you do choose to refuse an offer, your complaint or claim we will be held and recorded by us until there is a final decision in the test case. We will then contact you again as soon as possible to finally resolve your complaint.
I have already accepted an offer from you. Will my claim be revisited?
If you have accepted a 'full and final settlement', we believe it unlikely you would be awarded a further sum even if the test case indicates a potentially larger amount. However, this does not prevent you from asking for repayment of any new charges incurred if the courts find they are unlawful.
Where can I find out more?
Customers can contact us by calling 08456 022631 where they will hear an automated announcement and can then speak to an advisor.
Alternatively, you can find more information through the following links:
The British Bankers' Association: www.bba.org.uk
The Financial Services Authority: www.fsa.gov.uk
The Office of Fair Trading: www.oft.gov.uk
The Financial Ombudsman Service: www.financial-ombudsman.org.uk

[Tools]

Re: Banks take on the test case

Also this is on the Yorkshire Bank site Banks join OFT in test case - Questions and Answers

posting it here bfore they change their minds again.

I have already accepted an offer from you. Will my claim be revisited?
If you have accepted a 'full and final settlement', we believe it unlikely you would be awarded a further sum even if the test case indicates a potentially larger amount. However, this does not preclude you from asking for repayment of any new charges incurred if the courts find they are unlawful.

So if the Judge decides that the charges ARE unlawful I shall be asking for my charges back immediately.......even if they appeal.

[Amethyst]

Re: Banks take on the test case

Lloyds as at todays date

> Answers to questions on bank charges
Answers to questions on bank charges


Q: What is happening?
A: On 27 July 2007, the Office of Fair Trading (OFT), Lloyds TSB, six other UK banks and a building society started a court case to decide on the legality of unplanned overdraft charges. Together, these banks and the building society provide more than 90% of current accounts in the UK.

The first stage of the test case started on Thursday, 17 January 2008 and it will focus on the preliminary legal issues which include whether the Unfair Terms in Consumer Contracts Regulations apply to unauthorised overdraft charges and clarify the law around penalty fees. The initial hearing is expected to last about 3 weeks and the judge is likely to publish the judgment several weeks after that.

There may be a further hearing later in the year but we are unable to give any exact timescales for a conclusion to the test case at this time. Lloyds TSB along with the other Banks and building society involved have agreed with the OFT and the FSA to conduct the test case in an efficient, prompt and orderly way.

Until we know the final outcome of the test case, the way that Lloyds TSB will handle customers' complaints and claims about unauthorised overdraft charges will remain the same unless circumstances change.

We will continue to post updates on our website to keep you informed of progress on the test case as this is likely to run on for at least a year.

Q: What will happen to customer complaints about unauthorised overdraft charges?
A: Lloyds TSB will suspend dealing with or resolving customer complaints on unauthorised overdraft charges while the test case is running.
If you do complain about your unauthorised overdraft charges, we will write to tell you that we have received your complaint and that we will record it on your file. When a final decision is reached in the test case, we will contact you as soon as possible to tell you how we will resolve your complaint. We will apply the decision in the court case to all complaints we receive.

Q: Why are the banks allowed to stop dealing with unauthorised overdraft charge complaints during the test case?
A: We applied to the Financial Services Authority (FSA) for a suspension of the normal timetable for dealing with unauthorised overdraft charge complaints. The FSA decided that in the circumstances, it was appropriate to grant us a suspension of our obligations under the FSA's complaint handling rules whilst we seek legal certainty on this issue. The suspension is subject to a series of conditions designed to protect customers' rights. You can read the form of the FSA suspension (direction) here: www.fsa.gov.uk.
All customers who have made a written complaint on unauthorised overdraft charges but haven’t yet had a final response will receive a letter to explain the position with respect to their complaint.

Q: I’ve recently requested copy statements as the start of making acomplaint about bank charges. Can I still make a complaint?
A: We’re always happy to send copy statements on payment of our service fee. If you have requested them they should be sent to you within 40 days of payment of this fee. However, you should note that if you then write to make a complaint about your bank charges this will be treated as set out above.
Q: Can I make a court claim for a refund during the test case?
A: Yes, but we will apply to the court to put your case on hold while the test case is running. This is because the issues being raised in customer complaints on unauthorised overdraft charges are being considered in the test case.

Q: Can I complain to the Financial Ombudsman Service about my bank charges?
A: The Financial Ombudsman Service (FOS) has decided not to review complaints about unauthorised overdraft charges while the test case is running. If you do complain to FOS, you will receive a letter explaining this and letting you know what will happen.

Q: What if I have already been made an offer?
A: We will stand by any offer to settle a complaint or court claim that we have already made to our customers. If you have received an offer to settle from us which is still outstanding we will be writing to you again shortly. Our letter will explain that customers have two months to decide whether to refuse our offer and wait for the decision in the test case. If you do choose to refuse an offer, and return the settlement amount to us, your complaint will be held and recorded by us until there is a final decision in the test case. We will then contact you again as soon as possible to finally resolve your complaint.

Q: I have already accepted an offer from you. Will my complaint be revisited?
A: If we have made a 'full and final settlement' which you have accepted, we believe it unlikely you would be awarded a further sum even if the test case indicates you could have claimed a potentially larger amount. However, accepting any such settlement does not stop you from asking for repayment on any further new charges incurred if the court finds they are unlawful.

Q: You’ve rejected my complaint, what can I do now?
A: You may wish to refer your complaint to the Financial Ombudsman Service. However as set out above, the Financial Ombudsman Service (FOS) has decided not to review complaints about unauthorised overdraft charges while the test case is running. If you do complain to FOS, you will receive a letter explaining this.
In addition, you can also make a court claim for a refund during the test case. However we will be applying to the court to put your case on hold while the test case is running. This is because the issues being raised in customer complaints on unauthorised overdraft charges are being considered in the test case.

Q: How can you continue to charge what you do for these services when there is legal challenge?
A: We believe that our current account fees and charges are clear and represent a fair charge for a banking service that is valued by our customers. That is why we have worked with the other major UK banks and the OFT to start legal proceedings, which we believe will clarify the law in this area.

Q: Does this test case and the suspension of unauthorised overdraft claims apply to my credit card complaint?
A: No this test case and the suspension applies only to complaints about unauthorised overdraft charges and the law which applies to them.

Q: Where can I find out more?
A:You can contact us by calling 0845 603 0899.
Alternatively, you can find more information through the following links:
The Financial Services Authority:
www.fsa.gov.uk
The Office of Fair Trading:
www.oft.gov.uk
The Financial Ombudsman Service:
www.financial-ombudsman.co.uk

[Amethyst]

Re: Banks take on the test case

HSBC as at todays date

Important Information on Overdraft Charging



Update 15 January 2008


What is happening?

On 27 July, the Office of Fair Trading (OFT) HSBC and six other UK banks and a building society started a test case to decide on the legality of unauthorised personal overdraft charges. Together, these banks provide more than 93% of current accounts in the UK.
The British Bankers' Association has made a statement on behalf of the banks involved. You can read this statement at www.bba.org.uk
This case is being called a 'test case' because the decision will clarify the law and is likely to apply to all existing and future claims against banks about unauthorised personal overdraft charges.
We will continue to post updates on our website to keep customers informed of progress on the test case as it is likely to run for at least a year.
What will happen to customer complaints about bank charges?

Like most banks and building societies we will wait until a final decision is reached in the test case before resolving customer complaints on overdraft charges.
If you do complain about your overdraft charges, we will write to tell you that we have received your complaint and that we will record it on your file. When a final decision is reached in the test case, we will contact you as soon as possible to tell you how we will resolve your complaint. We will apply the decision in the test case to all complaints we receive.
Why are the banks allowed to stop dealing with bank charge complaints during the test case?

The banks applied to the Financial Services Authority (FSA) for a suspension of the normal timetable for banks to deal with unauthorised overdraft charge complaints. The FSA decided that, in the circumstances it was appropriate to grant a suspension of the banks' obligations under their complaint handling rules while the banks sought legal certainty on this issue (which is now affecting more than 100,000 UK customers). The conditions of the suspension are designed to ensure that customers are not disadvantaged by the suspension. You can read the form of the FSA suspension (direction) here: www.fsa.gov.uk
All customers who have made a written complaint on unauthorised overdraft charges but who have not yet had their complaint resolved will receive a letter to explain the position regarding their complaint.
Can I make a court claim for a refund during the test case?

Yes, but we will apply to the court to put your case on hold while the test case is running. This is because the issues being raised in customer complaints on unauthorised overdraft charges are being considered in the test case.
Can I complain to the Financial Ombudsman Service about my bank charges?

Yes, you can make a complaint to FOS but it will not be reviewed while the test case is running. If you do complain to FOS, you will receive a letter explaining this.
What if I have already been made an offer?

We will stand by any offer to settle a complaint or court claim that we have already made to our customers. If you have received an offer to settle from us, we will be writing to you again shortly. Our letter will explain that customers have two months to decide whether to refuse our offer and wait for the decision in the test case. If you do choose to refuse an offer, your complaint or claim we be held and recorded by us until there is a final decision in the test case. We will then contact you again as soon as possible to finally resolve your complaint.
I have already accepted an offer from you. Will my claim be revisited?

No. The offer we made and you accepted was in full and final settlement of your claim.
How long will the test case take?

A hearing took place before the Judge in the High Court on Friday 12 October at which the Judge made directions regarding the various procedural steps that are to take place. The first part of the test case is due to be heard in Court on 16 January 2008. That hearing is intended to decide certain preliminary issues of legal principle and is expected to take about 3 weeks, with judgment being given some time afterwards.
At this time it is too soon to give any exact timescales for a conclusion to the test case. We have agreed with the OFT and the FSA to conduct the test case in an efficient, prompt and orderly way.
Where can I find out more?

You can call us on 08457 404 404
Or you can find out more information through the following links:
The British Bankers' Association
The Financial Service Authority
The Office of Fair Trading
The Financial Ombudsman Service