Yorkshire Bank`s Reaction To OFT Announcement

[Tools]

http://www.ybonline.co.uk/0,,88550,00.html

[Amethyst]

Test case - Unauthorised overdraft fees - Update

What is happening?
Tomorrow (27 July), the Office of Fair Trading (OFT) and a number of UK banks and building societies started a court case to decide on the legality of unauthorised overdraft charges. The institutions are: Abbey; Barclays Bank; Clydesdale Bank (including Yorkshire Bank), HBoS; HSBC; Lloyds TSB; Nationwide; and, Royal Bank of Scotland.
This case is being 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 this could run for at least a year.

What will happen to customer complaints about unauthorised overdraft charges?
Banks and Building Societies will not be dealing with or resolving customer complaints on unauthorised overdraft charges while the test case is running.
If you have recently complained, or intend to, 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?
With the other banks, we have 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 while 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 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 (FOS) about my bank charges?
Yes, you can make a complaint to FOS but it will not be reviewed while the test case is running. You can read what the FOS has said here:
www.financial-ombudsman.org.uk

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 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 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?
At this time it is too soon to give any exact timescales for a conclusion to the test case but it could go for more than a year. 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 contact us through your branch or by calling us on 0800 20 21 22, choosing Option 6 and then Option 1.
Alternatively, you can find more information through the following links:

The Financial Service Authority
www.fsa.gov.uk

The Office of Fair Trading:
www.oft.gov.uk

The Financial Ombudsman Service:
www.financial-ombudsman.org.uk

[Amethyst]

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.

We will be applying to lift any stays granted.

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.

Stick to your timetable....don't let them put you off continuing with your claim through court to reclaim 100% of the money they have unlawfully taken from you.

[diamond]

Hi Ame - with all due respect - don't you think that this now presents a brick wall which is inpenetrable by us the claimants? The reality is we will now have to wait a year or more for our claims to be resolved.

Does this mean that the Judges will now be compelled/forced to grant all requests for stays or can they decline?