Banks Win First Battle In Reclaim Bank Charges Case
Perhaps a surprise to many, is the fact that the banks have won a decision in the court battle against charges. this has been decided under common law. The decision basically means that customers will not be able to use common law to claim their charges back between 2001-2007. this is not applicable to every bank, however.
The customers of Natwest and Intelligent Finance may still be able to get their charges reimbursed; it was not possible to come up with a positive, in relation to the scrutiny of their terms and conditions.
The judge has spoken, saying that common law could not be used in most cases, to challenge overdraft fees, and that the Office of Fair Trading, (OFT) can challenge the fees charged in relation to overdrafts, using the 1999 Unfair Terms in Consumer Contracts regulations.
There are a great many consumers that have had their cases put on hold since 2007, and they are going to be disappointed by the news. This suspension was ordered, upon the OFT using the courts to clarify matters.
The OFT is looking into the overdraft charges of up to �35 and obtaining legal clarification on the matter.
The ruling that must be made, goes way beyond the decision that has been made thus far, and it will be some time next year when all of the decisions would have been made, and there are new guidelines put in place, in regards to charges as a whole.
The decision does mean that any cases that arise, will be subject to county courts. The OFT are of the opinion that the whole complex legal process has far more many stages to go through. They are confident that the overall outcome will be advantageous for the consumer.
The ruling that has been passed in relation to the overdrafts, is one that will have suits high fiving, as the industry makes �2.61bn a year with applicable charges.