UK banks refund over £750 million to customers

| March 5, 2008 | 0 Comments

This time last year, UK banks were inundated with complaints from customers stating that overdraft fees were unfair. Customers wrote letters to their banks asking for the monies to be refunded.

However, a stay on payments was put in place when the banks and the Office of Fair Trading (OFT) agreed to a High Court test case on the rules governing the fees last July.

It has now been revealed that the UK’s banks repaid over £750 million last year to customers who sued for the return of their overdraft charges, according to the BBC.

A combined total of £549 million has been repaid by five of the major High Street banks as follows - Barclays £116 million, HBOS £122 million, HSBC £116 million, Lloyds TSB £76 million and RBS Natwest £119 million.

However, if OFT is successful in a High Court test case, the worst may be yet to come for the banks as they could be liable to pay a further £1.37 billion for 2007.

The figures have been gathered from the annual results of the 5 leading UK banks, the last of which was released earlier this week.

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