Victory Over Bank Charges for Consumers

7 of Britain’s largest banks have lost a landmark test case at the High Court relating to unauthorised overdraft charges. The case was brought by the banks to decide if the Office of Fair Trading could decree that borrowers fees of up to £39 for exceeding overdraft limits was acceptable.

Mr Justice Andrew Smith ruled in favour of the Office of Fair Trading stating: "I reject the banks’ contention that the Relevant Terms (the terms being challenged by the Office Of Fair Trading) are exempt from assessment as to fairness under the 1999 regulations. "

This now allows the Office of Fair Trading to decide what fees are acceptable and whether certain charges are unfair.

Naturally, the banks are expected to appeal, in order to continue to battle the ruling, delaying the cases of thousands of claimants.

Since 2006 there have been a large number of bank customers attempting to reclaim charges on the basis that they were unreasonably large fees, and there is an estimated £784 million in out-of-court settlements to customers who have reclaimed up to six years worth of charges.

Managing Partner at Waring & Co solicitors Chris Weir comments; "We are awaiting further developments on this particular ruling, as it is still very much an open forum, however it does appear to be a good sign for consumers as we have seen some particularly large claims brought as a result of this. With the recent budget proposal, the beginning of the financial year and the much publicised current credit crunch, it may prove to be a challenging time for the finance sector."

Anybody who wishes to speak to Chris about this case can contact him at Waring & Co Solicitors Tel 01204 550160, or email chris.weir@waring.co.uk.