Unfair bank charges - Supreme Court to decide today

| November 25, 2009 | 0 Comments
”Unfair

The ongoing legal battle between seven high street banks and one building society could reach a conclusion today.

The Supreme Court will decide whether the Office of Fair Trading (OFT) has the power to assess whether or not bank charges are fair.

The case, which has been ongoing for more than two years, could see banks refund millions of pounds to its customers.

So far the banks have lost at both the High Court and Appeal Court stages of the test case.

Should the OFT be victorious, then overdraft charges will be deemed unfair and it could result in an automatic refund of all banks charges that have been charged since July 2001.

However, should the banks win the appeal, it will be devastating for all groups who have been campaigning for many years about the charges.

Kevin Mountford, head of banking at moneysupermarket.com comments: “A victory for the OFT would be a major triumph for consumers in one sense, however as with all major regulatory change, it’s important to consider the impact for consumers.

If banks are forced to refund the millions of pounds it has charges, many believe they will find a way to recoup those losses - by charging for ATM withdrawals and cheque payments.

The banks involved in the case are Abbey, Barclays, Clydesdale, HBOS, HSBC, Lloyds TSB, Royal Bank of Scotland and the Nationwide Building Society.

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