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Bank Appeal Throws a Spanner in the Works
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Bank Appeal Upheld
Writes Dan Drage dan.drage@consumerchoices.co.uk
As anticipated, the appeal by banks against the OFT test case outcome has been upheld.
The subsequent delay caused by the now necessary visits to the Appeal Court and House of Lords, will result in an interval of up to two years before the matter is settled.
Five weeks ago, the High Court ruled in favour of the Office of Fair Trading (OFT), allowing the consumer affairs watchdog to press ahead with an investigation into whether banks can legally charge customers who borrow beyond their authorised overdraft limit or who write cheques that bounce.
Current account holders were afforded the license to get excited about the potential reclamation of billions of pounds in past fees. However, yesterday’s ruling will make this eventuality unlikely until 2010.
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"The subsequent delay caused by the now necessary visits to the Appeal Court and House of Lords, will result in an interval of up to two years before the matter is settled"
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Justice Andrew Smith has specifically permitted banks to challenge the element of the ruling which allows customers to sue their bank. Other, undisclosed aspects of his original ruling are being considered also.
Chris Eagle, Commercial Manager at Credit Choices, called this one yesterday:
‘There are three certainties in life: you pay taxes, Paul Scholes gets booked in the first half, and the banks would win this appeal’
He continues:
‘For those of you who have already filed a claim with your bank that these charges are refunded, it’s simply a case of sitting tight. Those that haven’t already written to their bank should do so immediately. Although payouts, if they do happen, appear to be years away, a large queue is forming and ideally you want to be as close to the front as possible.’
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