British banks lose overdraft charges case

The UK’s largest banks have lost a test case about how much they charge customers for unauthorised borrowing. The High Court ruled this week that fees for going into overdraft or bouncing cheques should be governed by the standard legal rules on contracts. The banks had been arguing that these fees were at their discretion.

The Office of Fair Trading (OFT) is now expected to demand that banks cut their charges. If the banks charges are found to be unfair, they could be forced to refund customers as much as two billion pounds, according to the Independent newspaper which had been leading a campaign on the issue.

One million customers won refunds before the OFT and the eight big British banks brought the test case to see if the charges were legal. Customers reported snowballing bank fees which saw them owe the bank thousands of pounds.


0 Responses to “British banks lose overdraft charges case”

  1. Leave a Comment

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

You can contact us at:

0800 FINSEC (0800 346 732)

Creative Commons License
Join Now 0800 FINSEC

RSS LabourStart – act now to help other workers

  • An error has occurred; the feed is probably down. Try again later.

Finsec Photos



%d bloggers like this: