Banks challenge High Court ruling on overdraft charges

by Gill Montia

Story link: Banks challenge High Court ruling on overdraft charges

The seven High Street banks involved in the High Court case brought by the Office of Fair Trading (OFT) to establish the legality or otherwise of charges for unauthorised overdrafts, have begun their appeal against a ruling in the test case.

Earlier this year, Mr Justice Andrew Smith ruled that the OFT had the right to decide whether or not the charges were fair.

The OFT could then assess the terms and conditions that allowed the banks to charge the fees under the 1999 Unfair Terms in Consumer Contracts Regulations.

The ruling was seen as a victory for the thousands of consumers, some of whom have had their county court cases for the return of unreasonable bank charges frozen, to await the outcome of the test case.

However, lawyers representing the banks are challenging the High Court judge’s ruling and arguing that the 1999 Consumer Contract Regulations are not intended as a method of price control.

The hearing is expected to last for several days.