Re: Banks lose overdraft charges case

On Apr 27, 3:22 pm, PeterSaxton <pe...@xxxxxxxxxxxxxxxxx> wrote:
On 26 Apr, 08:36, John Anderton <john1_ander...@xxxxxxxxxxx> wrote:> On 24 Apr, 10:48, "Section 31T" <s...@xxxxxxxxxxxxxxxx> wrote:

http://news.bbc.co.uk/1/hi/business/7364422.stm
The UK's biggest banks have lost a test case about overdraft charges.
*****
Will you be claiming your bank charges back?

I'm not sure you can (I could very well be wrong though !)

AIUI this result just means that OFT can ask a court to determine if
the contract between the customer and the bank is unfair. Even if a
court does decide that in future(and that's not certain), I'm not sure
that means customers can reclaim charges they have already paid.

I thought the ruling meant that the OFT could decide what charge is
fair.


I don't know - IANAL.

But, if they were penalty charges then they would have to be a
reasonable _estimate_ of the costs incurred.

As the court has said they aren't penalty charges, the only other
customer recourse seems to me to be for the contract clause that
causes these charges to be levied to be unfair. If it is unfair then
the clause is void and ALL the charges will have to be refunded.

Even if the OFT said a single 12GBP charge for "setting up" or
extending an unauthorized overdraft would be a reasonable term in the
contract I don't see how they can retrospectively change the existing
contracts, especially as that would be to the disbenefit of customers.

Tim.
.

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