Tory leader David Cameron has said that victims of ‘unfair’ banks charges should be paid back “quickly and fairly” if the test case finds in favour of consumers.
In an email to bank charges campaigner MoneySavingExpert.com’s Martin Lewis, Mr Cameron said they should not second guess the courts decision but if the decision goes against the banks then customers should be compensated automatically.
And he has now asked his Shadow Treasury Team to investigate the automatic bank charges system with Martin Lewis.
In his email, he said: “”I’ve asked my Shadow Treasury Team to look at your suggestion that banks should pay money back automatically if the courts do rule that the charges are unfair.
“They will be in touch with you to take this forward and go through the details.”
The bank charges test case began back in 2007, and despite a court ruling saying bank charges can be governed under fairness rules in April 2008, the case now awaits the House of Lords decision to the banks’ appeal which is expected to be made this autumn.
Responding to David Cameron’s email of support, Martin Lewis said: “While the court case and the OFT are looking at current charges, there’s been no mention of whether a system to payback those who’ve had their money taken unfairly will be set up.
“Here David Cameron states clearly that he believes it should happen, which should lift the spirits of all those reclaiming.”
If an automatic payback system is approved, according to Mr Lewis, consumers could have up to £10billion worth of bank charges returned to them, but without it this figure could be reduced to between £2billion and £3billion.
Having already written to Liberal Democrat leader Nick Clegg, Martin Lewis has said he will now write to Gordon Brown asking for his support over the automatic payback campaign.
FINALLY…. get someone behind this campaign and make things happen, i’ve been waiting two years and awaiting a payout which could mean i could put down a deposit on my first house! Alot is depending on the decision made…and i can’t wait!!!!
By: Natalie on September 11, 2009
at 8:29 am
Any refunds should take account of the accumulating nature of the unfair penalties.
For example, it may be decided that instead of a £30 penalty, a reasonable figure might be £5 so that only £25 is refunded.
However many sunsequent penaties are incurred due to previous unfair penalties pushing you over the limit again – it just snowballs.
So in the example above many of the £5 penalties would still be inappropriate.
By: James Stevens on September 14, 2009
at 3:54 pm