Banks updated info on sites following CMC 22nd May

[Amethyst]

HSBC

Overdraft Court Case update



information on Overdraft Court Case



Update 23 May 2008

What is happening?
As part of the ongoing test case process, a procedural hearing (known as a Case Management Conference) took place on 22 and 23 May, at which the next steps in the test case process were decided.
Firstly, the Court dealt with the issue of appeals.

• In April, the Court adjudged that unarranged overdraft fees are not exempt from being assessable for fairness under the Unfair Terms in Consumer Contracts Regulations 1999 ("UTCCRs"). The Court gave permission to the Banks to appeal this judgment.
  
  The Banks are appealing on this issue as they continue to believe that the fees are fair and that the UTCCRs do not apply to these types of fees. There is limited guidance from case law on whether and how the UTCCRs apply in these circumstances and as the test case process is of considerable public interest, it is important for the issues to be fully tested.
• In April, the Court confirmed that, under the Banks' current terms and conditions, unarranged overdraft fees are not penalties, as the Banks have always maintained. The OFT did not seek permission to appeal on this issue.

Secondly, it was confirmed that, at a short hearing on 7/8 July, the Court will be asked to consider whether, under terms and conditions previously used by the Banks, unarranged overdraft fees are capable of being penalties.
Thirdly, whilst the Court concluded in April that unarranged overdraft fees are not exempt from being assessable for fairness, the Judge was explicit in stating that this does not mean that they are unfair. A further hearing will be required in order for the Court to determine the issue of fairness.
It was confirmed that the next steps in the test case will be decided on, or soon after, 8 July as the Banks, the OFT and the Court continue to work closely to bring a conclusion to the test case process as soon as possible.
Other matters from the 24 April Judgment

The judge decided that:

• Our current terms are sufficiently clear to enable the typical consumer to have a proper understanding of them for sensible and practical purposes
• Unplanned overdrafts are one of the essential services which we provide to our current account customers.

A full copy of the judgment is available at www.judiciary.gov.uk
What is our stance on the test case process?
We are pleased that the judge agreed that our current charges are not unenforceable penalties and our terms are in plain intelligible language. We believe that the same analysis will apply to charges under our historic terms, which will be decided at the July hearing.
We remain committed to resolving, through the Court, the legal issues concerning overdraft charges. The 24 April judgment, and need for further Court cases, illustrates how complex those issues are. We expect that the case will continue to progress as quickly as possible and will work with the Office of Fair Trading (OFT) to achieve that.
What will happen to customer complaints about overdraft charges?
As previously agreed with the Financial Ombudsman Service and the Financial Services Authority (FSA), customer complaints relating to overdraft charges will remain on hold until the test case process is concluded.
If you do complain about your overdraft charges, we will acknowledge your complaint and 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 we allowed to stop dealing with overdraft charges complaints during the test case?
We and the other banks applied to the FSA for a suspension of the normal timetable for dealing with overdraft charges complaints. The FSA decided that it was appropriate to grant a suspension while the banks sought legal certainty on this issue. The conditions of the suspension are designed to ensure that customers are not disadvantaged in any way. You can read the form of the FSA suspension (direction) here: www.fsa.gov.uk
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 overdraft charges are being considered in the test case process.
Can I complain to the Financial Ombudsman Service about my overdraft charges?
Yes, you can make a complaint to FOS but they have indicated that complaints will not be reviewed while the test case is running. If you do complain to FOS, you will receive a letter explaining this.
I am in financial difficulty what can I do?
If you have financial problems please contact us and we will try to help you solve them. There are a number of options available which we will discuss with you or your chosen financial advisor.
What is the background to this test case?
On 27 July 2007, the 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 first part of the test case process was heard by the Court between 17 January and 8 February 2008. It dealt with certain preliminary issues of legal principle which included whether the UTCCR's apply to overdraft charges and whether overdraft charges can be penalties.

[Amethyst]

Re: Banks updated info on sites following CMC 22nd May

please add other banks updates on this thread as and when ta.

[ByTheWay]

Re: Banks updated info on sites following CMC 22nd May

LLOYDS TSB


On 22 May 2008, a Case Management Conference was held to determine the next steps in the test case. These next steps are:

• We and the other banks have been given permission to appeal the Judge’s findings that unauthorised overdraft charges are assessable for fairness. The appeal is expected to be heard in the autumn.
• In a short hearing in early July 2008, the Judge will consider whether the banks' historic overdraft charges are capable of being penalties. For Lloyds TSB, this will involve looking at the terms and conditions in use before November 2007.

Q: Why are the banks appealing?
A: The appeal is required for a number of reasons:

• There is limited guidance from case law on whether and how the Unfair Terms in Consumer Contracts Regulations apply in these circumstances.
• We continue to believe that these Regulations do not apply to unauthorised overdraft charges, where the customer is using and paying for a service that is being offered.
• The test case is of considerable public importance and has broader implications, not just for the banking industry but for other industries as well, so it is important for the issues to be fully tested.

Q: What happens next?
A: A further hearing will now be held in early July so that the court can consider whether our historic terms relating to unauthorised overdraft charges can be capable of being penalties.

The court will also consider our appeal against unauthorised overdraft charges being assessable for fairness in the early autumn. We believe that our charges are fair and that the charges will be upheld by the Court at this next stage of the test case.
We are keen to resolve the legal issues concerning unplanned overdraft charges to provide clarity for everyone. The judgment illustrates how complex those issues are. The Banks and the OFT agreed that the case should move forward as quickly as possible and this has been achieved with assistance from the Court. We expect that the case will continue to progress as quickly as possible and will work with the OFT to achieve that.
As previously agreed with the Financial Ombudsman Service and FSA, customer complaints relating to unplanned overdraft charges will remain on hold. We will continue to ask County and Sheriff Courts to keep cases relating to unplanned overdraft charges on hold until the test case process is concluded.

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: After the initial judgment was published, I read in the papers that the banks had lost – is this true?
A: No – it’s more complicated than that. The judge has ruled that unauthorised overdraft charges are not penalty charges. He also ruled however, that they are assessable for fairness under the Unfair Terms in Consumer Contracts regulations. At the Case Management Conference on 22 May, the Banks were granted permission to appeal this decision.

Q: What will happen to customer complaints about unauthorised overdraft charges?
A: Lloyds TSB will continue to suspend dealing with or resolving customer complaints about 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. A final decision will not be reached until the court decides whether or not our charges are fair. That issue has not been determined in the first stage of the test case.

Importantly, none of our customers who have raised concerns about unauthorised overdraft charges will be disadvantaged by this legal process.

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.

Q: I’ve recently requested copy statements as the start of making a complaint 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 about 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 eventually finds they are unfair.

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 are working with the other major UK banks and the OFT to obtain certainty through 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 3 000 000.

[Ladidi]

Re: Banks updated info on sites following CMC 22nd May

ABBEY



Update on progress with OFT test case


Update 28.5.08
Abbey and six other banks and one building society are engaged in a High Court test case with the Office of Fair Trading ("OFT") to decide the legality of unarranged overdraft fees. The first stage of the test case process was heard by the Court between 16 January and 8 February 2008 and dealt with certain preliminary issues of legal principle.
On 24 April 2008 the Court issued its judgment on this first stage of the test case process. As part of the ongoing test case process, a procedural hearing (known as a Case Management Conference) took place on Thursday 22 and Friday 23 May 2008. Various next steps in the test case process were decided at the hearing.
Firstly, the Court dealt with the issue of appeals. The Court gave permission to the Banks to appeal April's Court judgment that unarranged overdraft fees are assessable for fairness under the Unfair Terms in Consumer Contracts Regulations 1999 ("UTCCRs"). The Banks are appealing on this issue as they continue to believe that the fees are fair and that the UTCCRs do not apply to these types of fees. There is limited guidance from case law on whether and how the UTCCRs apply in these circumstances and as the test case process is of considerable public interest, it is important for the issues to be fully tested.
In April, the Court confirmed that the Banks' current terms and conditions relating to unarranged overdraft fees are not unenforceable penalties, as the Banks have always maintained. The OFT confirmed that they would not be seeking permission to appeal on this issue.
Secondly, it was confirmed that there will be another hearing where the Court will be asked to consider whether terms and conditions previously used by the Banks are capable of being penalties. A short hearing to decide this will take place on 7 to 9 July 2008.
While the Court concluded in April that unarranged overdraft fees are assessable for fairness, the Judge was explicit in stating that this does not mean that they are unfair. A further hearing will be required in order for the Court to determine the issue of fairness. It is not yet possible to confirm when this hearing will be but the Banks are working closely with the OFT and the Court to bring a conclusion to the test case process as soon as possible.
As previously agreed with the Financial Ombudsman Service and FSA, customer complaints relating to unarranged overdraft fees will currently remain on hold. The Banks will continue to ask County and Sheriff Courts to keep cases relating to unarranged overdraft fees on hold until the test case process is concluded.
Please continue to refer to our website for further information. We will continue to post updates to keep customers informed of progress on the test case
Where can I find out more?
You can find more information through the following links:

Frequently asked questions
Judgment on first stage of OFT test case - April 24 2008
Update to OFT test case - January 16 2008
The British Bankers' Association
The Financial Services Authority
The Office of Fair Trading
The Financial Ombudsman Service

[Ladidi]

Re: Banks updated info on sites following CMC 22nd May

Barclays

When you've
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Current Account Preliminary Test Case Judgment

Update 22 May 2008
Today the Judge has set out the next stages in the test case on bank fees for unarranged overdrafts.
The April judgment decided that the bank's current terms and conditions that relate to these fees are not 'penalty charges’, that these terms are in "plain and intelligible" language, or substantially so, and that unarranged overdrafts are part of the essential services banks provide to their personal account holders.
The court also considered the terms could be assessed for fairness under the UTCCR regulations but that did not mean that the charges were unfair. The banks are to appeal this part of the judgment as they consider these types of fees are fair and the regulations do not apply to them. However, it is also in the public interest to have full clarity and it is only the Court which can make the final decision on whether the charges are fair.
We will work closely with the courts and with the OFT to bring this to a conclusion as quickly as possible.
Barclays response to the judgment - 24 April 2008
1.The banks welcome the judgment that the court has issued on the first stage of the test case relating to unarranged overdraft charges. The test case process was initiated by the banks, with the OFT, to bring clarity to an issue which is of concern to a large number of bank customers. 2.This judgment - which contains important points for both the banks and the OFT to consider – marks the first stage in the test case process. The banks remain committed to resolving, through the court, the legal issues concerning unarranged overdraft charges. The judgment illustrates how complex those issues are. The banks and the OFT agreed that the case should move forward as quickly as possible and this has been achieved, with assistance from the court. The banks expect that the case will continue to progress as quickly as possible and will work with the OFT to achieve that. 3.The court has decided (subject to appeals) that the banks’ current terms and conditions relating to unarranged overdraft charges:

• Are not unenforceable penalties; but
• Are assessable for fairness under the Unfair Terms in Consumer Contracts Regulations 1999 (UTCCRs).

4.The banks are pleased that the court has agreed that their current charges are not unenforceable penalties. The banks believe that the same analysis will apply to charges under their historic terms. 5.In relation to the UTCCRs, the court has emphasised in the judgment that the question of whether the banks’ charges satisfy the fairness requirement of the UTCCRs has not been determined by the court. That is a question that can only ultimately be decided by the court and not, for example, by the OFT. 6.The court also reached the following conclusions:

• Unarranged overdrafts are one of the essential, real and identifiable services which the banks provide to their personal current account customers.
• As a matter of legal analysis the terms and conditions of many of the banks accurately reflect the fact that when a customer tries to make a payment without sufficient funds or an arranged overdraft, the customer is requesting an unarranged overdraft.
• The banks’ current terms and conditions are in “plain intelligible language” but the court found that, in “certain specific and relatively minor respects”, the current terms and conditions of some banks (namely Abbey, Barclays, Clydesdale and HBOS) were not.

7.A further hearing or hearings will now be required in order for the court to determine the issue of fairness (and any outstanding issues relating to the application of the principles in the judgment to the banks’ historic terms). The banks believe their charges are fair and that the charges will therefore be upheld by the court at this next phase. 8.The timetable for the next steps in the test case will be decided by the Court at a hearing on 22 May 2008. The banks are keen that all outstanding issues should be resolved as expeditiously as possible. They will be making case management proposals at the hearing on 22 May 2008 which are consistent with this aim. The banks and the OFT will each have to decide by the time of that hearing whether they wish to appeal any aspects of the judgment. 9.As previously agreed with the Financial Ombudsman Service and FSA, customer complaints relating to unarranged overdraft charges will remain on hold. The banks will continue to ask County and Sheriff Courts to keep cases relating to unarranged overdraft charges on hold until the test case process is concluded.Follow these links to find information on the websites of:

• Office of Fair Trading
• Financial Services Authority
• British Bankers Association

[ByTheWay]

Re: Banks updated info on sites following CMC 22nd May

Alliance & Leicester

Test Case - Unauthorised overdraft charges - update

Background

In conjunction with the Financial Services Authority ("FSA") and the Office of Fair Trading a number of current account providers submitted a ‘test’ case last year, approaching the High Court for a ruling on the complex issue of unauthorised overdraft fees.
Update 25 April 2008

On 24 April 2008, the Court issued its judgement on the first stage of the test case, which dealt with preliminary issues of legal principle.

The judge has decided that the Office of Fair Trading ("OFT") can apply consumer contract regulations to decide if bank overdraft charges are fair or not.

The judge has however stressed that his decision today did not mean that the terms imposed on customers by the banks were unfair, or that they were not binding on consumers. The banks individual terms will be reviewed in further hearings.

The full judgement is complex, and like the banks directly involved in the test case, we will be studying the ruling in more detail.

Consequently, customer complaints relating to unauthorised overdraft charges will currently remain on hold.
More Information

Seven banks and one building society (the "Banks") are engaged in a High Court test case with the Office of Fair Trading to decide the legality of unauthorised overdraft charges. Alliance & Leicester plc is not one of the Banks involved in the test case.

The first stage of the test case was heard by the Court between 16 January and 8 February 2008 and dealt with certain preliminary issues of legal principle. Further Court hearings will be required before the test case process is concluded. The likely timetable for the next steps in test case will be decided by the Court at a hearing which we understand will take place in early May 2008.

Customer complaints relating to unauthorised overdraft charges will currently remain on hold, as previously agreed with the Financial Ombudsman Service and the Financial Services Authority. The Banks will continue to ask the County Courts in England, Wales and Northern Ireland and the Sheriff Court in Scotland to keep cases relating to unauthorised overdraft charges on hold until the test case process is concluded.

Please refer to the British Bankers' Association (BBA) or the Financial Services Authority websites for further information. We will update our website once more guidance is available.
What does it mean for customers?

What if I have a complaint outstanding?
The complaint will remain with Alliance & Leicester and will not be dealt with until the test case is resolved. Complaints will be dealt with as quickly as possible once the test case is concluded.
What if I wish to complain from today?
Customers can still complain now or they can wait until the full test case process is complete - they will not be disadvantaged. The complaint will be recorded by us and will be dealt with as quickly as possible once the test case is concluded. The FSA still require any new complaints to be promptly acknowledged.
What if Scotland is the most likely jurisdiction?
Customers may choose to take their complaint to the FOS or the courts in Scotland. The right to refer the complaint to the FOS will not be affected. However, if customers want to bring a claim to the courts in Scotland, the timing of when the claim is raised may be important. They are advised to seek independent advice on filing a claim now to protect their rights (although a court fee will be payable).
What if I have already had a settlement and think they may want it reviewed?
A full and final settlement stands. In some exceptional circumstances the complaint can be reviewed. Customers can still complain about new charges incurred.
What if have received a final response from us which does not include an offer?
Customers still have the option of complaining to FOS. However, it is unlikely that the FOS will consider any complaints about charges for unauthorised overdrafts until complete resolution of the test case. Other than where the customer claims financial hardship – see below.
What if I am in very difficult financial circumstances? – (hardship cases)
Alliance & Leicester will continue to review all cases where hardship is claimed during the waiver period. Where a customer has claimed hardship and is not happy with our response they are still entitled to be referred to, and dealt with by, the FOS. See the Banking Code for further guidance.
What if I wish to complain to Alliance & Leicester about other issues?
Customers can continue to use the existing complaints process to seek redress about other financial matters, such as insurance, mortgages and current accounts. However, if their complaint relates to the level, fairness or unlawfulness of unauthorised overdraft charges, that element of the complaint will be registered but not dealt with until a resolution has been achieved.
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.
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.
How long will the test case take?
The timetable for the next steps in the test case will be decided by the Court at a hearing expected by the end of May. The Banks are keen that all outstanding issues should be resolved as expeditiously as possible. They will be making case management proposals at this hearing which are consistent with this aim. The Banks and the OFT will each have to decide by the time of that hearing whether they wish to appeal any aspects of the judgment.
What if I have a case on hold at the county court?
The judge indicated that these cases should continue to be put on hold at least until the next step of the test case process and probably beyond that.
Where can I find out more?

We will post updates on the test case on our website and in accordance with the FSA's complaint handling rules, we will write out to customers to keep them advised of progress on their complaint.

[ByTheWay]

Re: Banks updated info on sites following CMC 22nd May

Lloyds TSB have also sent out letters this week to those with pending claims, near enough saying the same as their website update.

[Tools]

Re: Banks updated info on sites following CMC 22nd May


Judgment on first stage of OFT test case Judgment on first stage of OFT test case

OFT media statement

1. The Banks welcome the judgment that the Court has issued today on the first stage of the test case relating to unarranged overdraft charges. The test case process was initiated by the Banks, with the OFT, to bring clarity to an issue which is of concern to a large number of bank customers.

2. This judgment - which contains important points for both the banks and the OFT to consider - marks the first stage in the test case process. The Banks remain committed to resolving, through the Court, the legal issues concerning unarranged overdraft charges. The judgment illustrates how complex those issues are. The Banks and the OFT agreed that the case should move forward as quickly as possible, and this has been achieved with assistance from the Court. The Banks expect that the case will continue to progress as quickly as possible and will work with the OFT to achieve that.

3. The Court has decided (subject to appeals) that the Banks' current terms and conditions relating to unarranged overdraft charges:
(A) are not unenforceable penalties; but
(B) are assessable for fairness under the Unfair Terms in Consumer Contracts Regulations 1999 ("UTCCRs").

4. The Banks are pleased that the Court has agreed that their current charges are not unenforceable penalties. The Banks believe that the same analysis will apply to charges under their historic terms.

5. In relation to the UTCCRs, the Court has emphasised in the judgment that the question of whether the Banks' charges satisfy the fairness requirement of the UTCCRs has not been determined by the Court. That is a question that can only ultimately be decided by the Court and not, for example, by the OFT.

6. The Court also reached the following conclusions:
" unarranged overdrafts are one of the essential, real and identifiable services which the Banks provide to their personal current account customers;
" as a matter of legal analysis the terms and conditions of many of the Banks accurately reflect the fact that when a customer tries to make a payment without sufficient funds or an arranged overdraft, the customer is requesting an unarranged overdraft; and
" the Banks' current terms and conditions are in "plain intelligible language" but the court found that, in "certain specific and relatively minor respects", the current terms and conditions of some Banks (namely Abbey, Barclays, Clydesdale and HBOS), were not.

7. A further hearing or hearings will now be required in order for the Court to determine the issue of fairness (and any outstanding issues relating to the application of the principles in the judgment to the Banks' historic terms). The Banks believe their charges are fair and that the charges will therefore be upheld by the Court at this next phase.

8. The timetable for the next steps in the test case will be decided by the Court at a hearing on 22 May 2008. The Banks are keen that all outstanding issues should be resolved as expeditiously as possible. They will be making case management proposals at the hearing on 22 May 2008 which are consistent with this aim. The Banks and the OFT will each have to decide by the time of that hearing whether they wish to appeal any aspects of the judgment.

9. As previously agreed with the Financial Ombudsman Service and FSA, customer complaints relating to unarranged overdraft charges will remain on hold. The Banks will continue to ask County and Sheriff Courts to keep cases relating to unarranged overdraft charges on hold until the test case process is concluded.

10. Further information, when available, will be posted on the BBA website (BBA Association - Home).

Click here for further information


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[Froggy]

Re: Banks updated info on sites following CMC 22nd May

NatWest Dated 23rd May 2008

On 27 July 2007 the Office of Fair Trading, seven UK banks (including NatWest) and one building society started a court case to decide the legality of unauthorised overdraft charges.
On 24 April 2008, the Court issued its judgment on the first part of the test case process. The judgment is available via the www.judiciary.gov.uk (PDF).
You may need Adobe Reader to view some of these documents. Get Adobe Reader. Visit access.adobe.com.
In summary:

• The court decided that the current charges are not penalties.
• The Judge also found that the banks' current terms are sufficiently clear to enable the typical consumer to have a proper understanding of them for sensible and practical purposes.
• The Judge found that the terms and conditions relating to unarranged borrowing charges are assessable for fairness under the Regulations. He was not asked to rule on whether the banks' terms were fair or not.

On 22 and 23 May 2008 a procedural hearing (known as a Case Management Conference) took place. Various next steps in the test case process were decided at the hearing.
Firstly, the Court dealt with the issue of appeals. The Court gave permission to the Banks to appeal April's Court judgment that unarranged overdraft fees are assessable for fairness under the Unfair Terms in Consumer Contracts Regulations 1999 (“UTCCRs”). The Banks are appealing on this issue as they continue to believe that the fees are fair and that the UTCCRs do not apply to these types of fees. There is limited guidance from case law on whether and how the UTCCRs apply in these circumstances and as the test case process is of considerable public interest, it is important for the issues to be fully tested.
The OFT is not seeking permission to appeal the April judgment.
Secondly, it was confirmed that there will be another hearing where the Court will be asked to consider whether terms and conditions previously used by the Banks are capable of being penalties. A short hearing to decide this will take place on 7 to 9 July 2008.
While the Court concluded in April that unarranged overdraft fees are assessable for fairness, the Judge was explicit in stating that this does not mean that they are unfair. A further hearing will be required in order for the Court to determine the issue of fairness. It is not yet possible to confirm when this hearing will be but the Banks are working closely with the OFT and the Court to bring a conclusion to the test case process as soon as possible.
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As previously agreed with the Financial Ombudsman Service and the FSA, customer complaints relating to unauthorised overdraft charges will currently remain on hold. NatWest will continue to ask Courts to keep cases relating to unauthorised overdraft charges on hold until the test case process is concluded.

1. What will happen to customer complaints about unarranged overdraft charges?
   The FSA granted NatWest a suspension of its obligations under the FSA's complaint handling rules whilst the Bank sought legal certainty on this issue.
   
   If you do complain about your unarranged 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.
2. What will happen to my court claim for a refund now?
   Most county court cases have now been stayed, i.e. the county courts have decided that no further action should be taken in respect of them at this stage, while the test case proceeds. These stays have been put in place because the test case will give important guidance to the county courts as to how they should approach individual consumer cases as a matter of legal principle. It is important that all county courts adopt similar approaches to ensure fairness between claimants.
3. What will happen to customer complaints made through the Financial Ombudsman Service in the meantime?
   All complaints made to the FOS have been put on hold pending the final determination of the test case. Further information about this is available from the FOS website - www.financial-ombudsman.org.uk
4. What will happen next in the test case?
   There will be a further hearing on 7 to 9 July 2008 where the Court will be asked to consider whether terms and conditions previously used by the Banks are capable of being penalties.
   
   While the Court concluded in April that unarranged overdraft fees are assessable for fairness, the Judge was explicit in stating that this does not mean that they are unfair. A further hearing will be required in order for the Court to determine the issue of fairness. It is not yet possible to confirm when this hearing will be but the Banks are working closely with the OFT and the Court to bring a conclusion to the test case process as soon as possible.
5. How long will it take until customer cases are finally resolved?
   At this stage, it is impossible to say. The Banks are working closely with the OFT and the Court to bring a conclusion to the test case process as soon as possible.
6. I am in financial difficulty - what can I do?
   If you have financial problems, come and talk to us, and we will try to help you solve them. Depending on your circumstances, we could set regular or fixed repayments for debts, or we could reduce or suspend your repayments for a certain period.
   
   If you have a more serious debt problem, we will work with you and put you in touch with organisations that offer help and advice to sort out your repayments and overcome your difficulties.
   
   If you feel you need independent financial advice, we will be happy to direct you to someone, or to work with your chosen adviser.
   
   The sooner you come to us, the more likely it is that we will be able to help.
7. Where can I find out more?
   We will update this page with any developments in the proceedings.
   You can contact us by calling on 0845 3030 456. Lines are open 9.00am-5.00pm Monday to Friday or 9.00am-1.00pm Saturday.
   Alternatively you can find out more at the following websites:
   • The Financial Service Authority
   • The Office of Fair Trading
   • The Financial Ombudsman Service
   • Judiciary website (PDF)
   • BBA press release