The Office of Fair Trading (OFT) has launched a test case on unauthorised overdraft charges.

It follows "tens of thousands" of complaints made to the body - plus the county courts and the Financial Ombudsman Service - by consumers regarding charges they feel to be unfair.

The OFT is hoping that the High Court will declare that the provisions of the Unfair Terms in Consumer Contract Regulations apply to current accounts and overdraft charges.

This is disputed by banks and industry bodies such as the British Bankers' Association.

According to the OFT, "a quick determination of this point of principle will assist in securing a clear and orderly resolution of the fairness of these charges".

Meanwhile, the Telegraph has reported that Lloyds TSB staff have been issued with a memo telling them to reject initial approaches for refunds of overdraft charges.

The newspaper said that the memo "urges staff to reject first-time claims out of hand" unless the claimant is "very ill or dying".

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