FSO waiver leaves bank charge claimants confused

by Gill Montia

Story link: FSO waiver leaves bank charge claimants confused

In late July, the Office of Fair Trading (OFT) began the process of bringing a case in the High Court to establish the fairness or otherwise of the high fees charged by some banks for unauthorised overdrafts.

The action has left large numbers of potential claimants in a confused situation, as hundreds of thousands of dissatisfied bank customers were in the process of reclaiming charges, when the court case was announced.

The FSO has granted a waiver, under which banks are allowed to defer dealing with these complaints until a decision has been reached by the High Court.

However, the waiver specifically excludes cases where hardship is involved and for this group of customers the FSA requires the banks to act.

Unfortunately, the term “hardship” is undefined in the waiver and this could leave many consumers unaware that they still have a right to have their claim examined.

Which?, the consumer group, is currently urging the FSA for clarification on the situation.

The FSA has so far suggested that the banks should use the definition as laid down by the voluntary Banking Code Standards Board.