OFT Test Case on reclaiming unfair bank charges overturned by UK Supreme Court
The UK Supreme Court has overturned an earlier court ruling that allowed the Office of Fair Trading to investigate the fairness of unauthorised overdraft charges. The Court also said it would not allow an appeal by the OFT to the European Court of Justice.
New claims against the UKís banks and building societies were suspended in July 2007 when the OFT and the banks agreed to stage the test case to see if the overdraft charges were legal or not.
The British Bankers’ Association says in a statement: “The Banks acknowledge the unanimous decision of the Supreme Court to allow their appeal. We recognise this issue has been of real concern to a large number of customers and we are pleased this decision brings clarity for all.”
“The Banks will work with the regulators to ensure that the outstanding customer complaints are brought to a swift conclusion.”
Over one million consumers have made claims between July 2007 and the present date, which have been suspended.
he test case to decide the legal issues thrown up by the dispute was brought jointly by the OFT and Abbey, Barclays, Clydesdale, Halifax Bank of Scotland and Lloyds TSB, which are now part of the same group, HSBC, Royal Bank of Scotland Group and Nationwide Building Society.
The decision comes after Santander launched a fee-free current account called the Santander Zero Current Account last week.
The Zero Current Account has no overdraft penalty fees, no fees for bounced payments, no charges for taking out cash overseas and no foreign exchange fees.
Click here to Compare Current Accounts.