Lloyds wins another overdraft case; more judges express displeasure at bank’s failure to appear
by Elaine Frei
Another county court has ruled in favor of Lloyds TSB’s (LSE: LLOY) overdraft charges. The court, in Lancaster, dismissed a case in which a builder was attempting to win a refund of £3,000 in overdraft charges and interest. Even though a Lloyds representative did not show up in court, the judge ruled that the complainant had not stated an adequate claim.
However, the man filing the claim, Julian Rudd, said that although he did not show up for the hearing either he felt that if he had worded his complaint more clearly he could have won the case. A representative of Consumer Action Group said that the case, along with another in Birmingham that was decided in favor of Lloyds, point to the fact that individuals must be careful and complete in preparing their cases for the court.
Even with the two recent wins by the bank, some courts have continued to express their annoyance that banks have not been sending representatives to defend claims against them even when a written defense has been submitted to the court. A judge in Denbigshire, for instance, has ordered Lloyds to submit, in writing, a list of cases it has taken to trial and all those it has settled out of court.
If it does not do so by a 5 June deadline, the bank could find itself charged with abuse of process. Another judge, in Worcester county court, ruled in favor of a claimant against Lloyds and said he was fed up as this was the 50th time the bank had failed to send a representative to argue a claim.
In addition, even though Lloyds has won two cases of claims against it for the refund of overdraft charges, it continues to settle cases rather than take them to court. Website Moneysavingexpert says that since reports of its win in Birmingham on 15 May, Lloyds has settled 24 cases out of court by agreeing to refunds.
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