Bank charge verdict held back even
further.
23rd January 2009
All those that have been waiting patiently for the court ruling on whether or not bank charges are fair will have to wait even longer ~ Another six months! It is a hefty kick in the stomach for those that have been expecting an answer as to whether or not they can claim compensation, and who will now have to wait even longer.
It is the FSA (financial services authority) that have sanctioned the six month extension on the waiver, which grants the financial institutions of Britain a massive sigh of relief at a time where it would appear they need all of the help that they can get.
The initial waiver was introduced in July of 2007 at the time of the test court trial commencing. The case was not expected to take as long as it has and it has been deemed only right that the waiver remains in place until a decision has been made as to whether or not the banks are indeed right or wrong to be charging customers in the way that they have been.
The FSA feel that it is their duty to remain non-partisan and to look at the situation from the viewpoint of both the financial institutions as well as the proletariat. With this in mind there was only really one option ~ extension of the waiver.
As long as the waiver stands, the Financial Ombudsman Service has to stick by the agreement that it made to not process any claims against the financial institutions. This is inclusive of any cases that have been filed in county courts.
Initially the court case went in favour of the Office of Fair Trading, with the High Court ruling that a claim on behalf of the financial institutions that certain regulations were not applicable was deemed to be somewhat erroneous. An appeal to this decision was swiftly launched by the banks, and a judgement on the appeal is yet to be made.
At the moment then those that did not make claims when the opportunity was there, are still in a position whereby they are unsure as to whether they will ever be able to make a claim. Financial institutions are doubtless glad of the waiver extension. What with being in a predicament whereby the government are bailing them out, they are not in the best of positions to be paying back billions of pounds on top of this.
If the eventual outcome is one in favour of the consumer then it will simply allow customers to be able to claim back more money, relative to a longer period of time. This though at current, is perhaps somewhat otiose to those struggling to get through economical downturn.