Banks have eight weeks to deal with a million complaints

by Gill Montia

Story link: Banks have eight weeks to deal with a million complaints

The Financial Services Authority (FSA) has announced that its waiver relating to complaints to banks over unauthorised overdraft charges, has lapsed.

The waiver was granted during the High Court test case brought by the Office of Fair Trading (OFT) against seven banks and one building society, to establish the legality of the charges.

Following yesterday’s ruling in favour of the banks, the regulator has told firms that they must now deal with the backlog of complaints in the eight-week period required under FSA rules.

It is difficult to understand how this will be achieved, as the case has been running for over two years and an estimated one million individuals and businesses have had their complaints put on hold.

While the Supreme Court ruled in favour of the banks yesterday, Court President, Lord Phillips of Worth Matravers, suggest that the OFT still has scope to pursue fairer treatment for consumers who unexpectedly go into the red.

The OFT has promised a full statement on its position next month.