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Taxpayer-owned banks pressured to stop overdraft fees

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by David Masters
Taxpayer-owned banks pressured to stop overdraft fees

Banks are under pressure to back down from their multi-million pound court appeal in favour of overdraft charges.

The banks are currently appealing a High Court ruling from last April that allowed the Office of Fair Trading (OFT) to determine the fairness of bank charges.

Some banks were known to charge customers up to £39 for exceeding their overdraft limit or having a cheque bounce, allegedly making the banks an extra £3.5 billion every year.

Because of the appeal, an estimated 10 million customers have had their complaints about the fees put on hold.

Now that the banks have been bailed out by taxpayers’ money, consumer rights groups are putting pressure on them to withdraw the High Court appeal.

Consumer Action Group campaigner Marc Gardner told the Daily Mail: “We ought to put this nonsense to bed quickly.

“Many [customers with charges have] got black marks on their file, and debt collectors on their backs.

“Some even face being repossessed for these unlawful charges.

“It’s a disgusting injustice that is being done by banks that we now own.”

A spokesperson for the OFT said a court decision on the banks’ appeal is expected by the end of January.

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News posted: January 22, 2009

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1 Comment

  1. I close my visa account from Wells Fargo. When I had my visa account I had overdraft protection. I closed the account because I could not afford the service charge. I ask clerk if I could close my account two days later because I was afraid that I would be charge overdraft. She inform me that I still had overdraft protection, but that was lie. Over week, I went back and forth with bank, I never got them return my overdraft charge. What was worst is that I had to made for two month payment on visa, even if the account was close. Wellsfargo told it take them about 45 to 60 days to close the account. Some of the charge only for $4.00 to $5.00 because I had the money in bank when I run my ATM, but I made the payment it made me overdraft charge. I have call Wellsfargo but they never will to help or revise the charge.

    Comment by Mary — September 16, 2009 @ 5:15 am

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