The ongoing bank charges test case is expected to be concluded within the next few days and could, depending on the Supreme Court’s decision, force banks to payback up to £20billion in ‘unfair’ overdraft fees, the Money Mail has revealed.
After two years, the case between the UK’s leading banks and the Office of Fair Trading (OFT) is now in its final stages as both parties await the Supreme Court’s verdict.
With the newly formed Supreme Court replacing the House of Lords as the highest court in the land earlier this month, it will now decide whether it is right that the OFT has the power to judge bank charges using fairness rules as the first test case verdict ruled back in April last year, before the banks chose to appeal the decision.
Commenting on the bank charges case that could leave banks billions of pounds out of pocket, Tony Hazel at the Daily Mail, said:
“Our information is that the Financial Services Authority has asked for details of charges going back to 2001. This implies that the banks may be forced to repay any unauthorised charges going back a full eight years.”
Mr Hazel believes the implications of the court ruling in favour of the OFT would be “stunning”.
“We estimate that the total bill could be close to £20billion if the banks are forced to repay every customer every penny they are owed,” he said, before suggesting “this could seriously strain the finances of some of the biggest semi-nationalised banks.”
Leading high street banks such as Lloyds and RBS, both of whom are still feeling the effects of banking crisis could, depending on the Supreme Court’s decision, find themselves in an even more vulnerable position.
I am aware that banks are vunerable at present,so are alot of unfortunate people.
who were caught in the banks web of unruly charges.
I for one suffered greatly financially,and still do to this day,
Largely due to my bank.
The system seemed to be a money spinner, off the backs of honest people,who thought their money was safe,in the bank of their choice.
So let justice be done to improve the lives of the public who have suffered.
Maybe then we can start paying off all are debts etc we accumulated due to these charges
By: stephen on October 21, 2009
at 6:25 pm
how can banks condone just say a charge of £19.50 for a unauthorised amount of £4.50. how can they in any honesty say that the couple of minutes it took them and mostly done electronically cost the bank £19.50. the scurge of this country is bankers and banks with no regard for anything but profit. the scumbs are sucking the life out of the country
By: cat on October 22, 2009
at 9:46 am