Bank charges ruling due on Thursday 24th April

[Legal Beagles]

The judge hearing the test case against unfair bank charges will be handing down his judgement later this week

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[Amethyst]

Re: Bank charges ruling due on Thursday

The long-running controversy over bank charges could come a step closer to being resolved this week after it was announced that the judge hearing the test case would be handing down his judgement on Thursday.
The case, which began in January, saw the Office of Fair Trading (OFT) take on eight banks and building societies over the fees levied when a current account goes over its agreed overdraft limit, or a cheque or direct debit is bounced.
According to the OFT, banks receive up to £3.5bn a year in unauthorised overdraft fees - nearly £10m a day.
They charge up to £39 for a bounced cheque, standing order or direct debit, and critics of the system say this does not reflect the actual cost incurred by the banks, which could be as little as £2.
The OFT claims the charges are illegal under the Unfair Terms in Consumer Contracts Regulation 1999.
Should it win the case it is likely to force current account providers to cut fees, and the banks could be made to return millions of pounds to customers.
Earlier this year HSBC, one of the banks involved in the case, admitted it had already repaid £11m of fees and could face claims for a further £300m.
Mr Justice Andrew Smith, who heard the case in January this year, listened to 14 days of evidence put forward by the OFT and the banks, who represent 90% of the current account market.
The consumer group Which? outlined three of the possible outcomes for the test case:
· An outright win for the OFT: The court could rule that all terms and conditions (T&Cs) for the test case banks over the past six years can be assessed for fairness
· An outright win for the banks: The court could rule that none of the T&Cs used by any of the test case banks over the past six years can be assessed for fairness

· Something in between: The court might decide that some T&Cs are subject to fairness assessment, while others are not. Distinctions could be drawn on the basis of the type of charge, the bank in question, or the version of T&Cs in question
In each scenario it said it would then be necessary to assess whether the court's ruling also applied to banks not involved in the case.
A straightforward win for either side would make this easier, but is likely to lead to an appeal by the losing side, which might not be heard until 2009.
The OFT said it would be reading the judgement on Thursday and considering it carefully before making a statement.
The fees became a subject for consumer rebellion last year after the OFT ruled that similar fees for late and unpaid credit card repayments were unlawful and consumer groups started to encourage customers to claim refunds.
More than 1m reclaim letters were downloaded from websites, and in some cases customers were able to win back thousands of pounds from the banks, who refused to contest the claims in court.
The Financial Services Authority had allowed account providers to put reclaim letters on hold until the test case was resolved.
This may be extended until the outcome of any appeal, so it could be another year before consumers find out if they are entitled to refunds.

[Amethyst]

Re: Bank charges ruling due on Thursday

Confirmed thus far by the lovely people at the OFT. More details later.


Director of Finance Online - Bank charges verdict issued this week

Bank charges judgement to arrive on Thursday: OFT bank charges case | This is Money



Still dubious considering the previous indications of a July judgement...but it is being investigated.

[Amethyst]

Re: Bank charges ruling due on Thursday 24th April

The OFT, and the court, have confirmed Judgement will be handed down on Thursday 24th April at the Royal courts of justice.

[Amethyst]

Re: Bank charges ruling due on Thursday 24th April

Just for interest Credit Crunch: Bank Of England To Give Lenders £50bn Cash Injection - Legal Beagles

[Budgie]

Re: Bank charges ruling due on Thursday 24th April

Bugger bugger bugger !!!

I am working at an exhibition in London on Thursday so wont be able to go to the High Court to hear the Judgment first hand.

Still, I have no doubt that Exc will be going and will be waiting to hear the news, as it happens from our number 1 reporter at the Court !!

Budgie

[Shazzaw]

Re: Bank charges ruling due on Thursday 24th April

S**t - just heard!!

Does anyone know whether the decision will be made to all and sundry on Thursday or will this be the judgement just given to the banks and OFT for them to contemplate for a few days before the decision is made public??

At least we'll know one way or the other rather than this agonising wait that we were expecting to last until July.

Any thoughts EXC and others on whether everyone will know on Thursday.....could the banks already have been advised of the judgment as they requested for them to prepare for things??

[EXC]

Re: Bank charges ruling due on Thursday 24th April

Well it looks like I'm going to have some help this time!

[Vortex]

Re: Bank charges ruling due on Thursday 24th April

Shazzaw, the Banks will have the judgement of Wednesday which is 24 hours prior to the announcement. OFT will also get a copy. The judgement is announced on the Thursday.

[EXC]

Re: Bank charges ruling due on Thursday 24th April

S**t - just heard!!

Does anyone know whether the decision will be made to all and sundry on Thursday or will this be the judgement just given to the banks and OFT for them to contemplate for a few days before the decision is made public??

At least we'll know one way or the other rather than this agonising wait that we were expecting to last until July.

Any thoughts EXC and others on whether everyone will know on Thursday.....could the banks already have been advised of the judgment as they requested for them to prepare for things??

Thursday is the handing down of the judgment - making it public. Both parties will be given a copy a day or two before - as of this afternoon the OFT had not had a copy. There will also be a case management hearing
either just before or on the day.

Written copies of the judgment will be handed out to press and public when the judge has finished on the day.

[Shazzaw]

Re: Bank charges ruling due on Thursday 24th April

Thanks EXC / Vortex,

I guess then it will be later on during the day that we'll all know the initial outcome.

God, can't believe that after nearly 9 months since the Test Case was heard we are at last getting a date which I think will decide things once and for all. I can safely say I've been looking at BBC. LB, and other sites half a dozen time sdaily for the last 9 months for any snippets of info.

No doubt I'm starting to think like those out their with the many conspiracy theories that I've read for the last 9 months but just to add fuel to the flames this one worries me

"The OFT said it would be reading the judgement on Thursday and considering it carefully before making a statement."

Whereas the fact the govt have massively helped out the banks today (we'll look after you if you agree to give those poor people their charges back) would give everyone optimism.

Yet I know that the above is absolute tosh and that Justice Smith would have made his judgment based on what he's heard. Think I've become brainwashed like all the others in seeing the lack of any news on the case result in the slightest comment / article taking on massive importance!!

Just pleased to seem some closure on this so we can all start planning and moving forward.

S.

[EXC]

Re: Bank charges ruling due on Thursday 24th April

I guess then it will be later on during the day that we'll all know the initial outcome.

You can rest assured that this site will be the first to announce the outcome and the first to publish the full written judgment.

[Shazzaw]

Re: Bank charges ruling due on Thursday 24th April

Jeez, can't believe I'm on the road Thursday without any PC access - do you offer one of those £1.50 text alerts EXC??!!! lol - if not I'll be either anxiously listening to Radio 2 or Five Live or phoning the other half every ten mins to get them to check for updates on LB!!

Thank God we're at last getting conclusion after ..what.. 3 years!!

[Vortex]

Re: Bank charges ruling due on Thursday 24th April

Shazzaw, I think you need to send mobile number to exc so that mobile text alert can be given once the judgement has been read.

[EXC]

Re: Bank charges ruling due on Thursday 24th April

They are hoping to make a big enough room available at RCJ to accomodate all the press and public - if not there will be a feed room. Either way, the moment I know which way the judgment goes I'll leave the room and call the result in to the site which will go straight up.

We'll have a bunker at the Strand Palace Hotel and scan & post the full written judgment as soon as it becomes available.