OFT To Review Bank Charges

The OFT have won the first part of the battle against the banks in the high court and can now assess the terms and conditions of charges for fairness.

The OFT will begin reviewing bank charges immediately and is expected to announce its findings in July, before heading back to the high court. Once it decides whether these bank charges are unfair and returned the case to the high court, the loosing side ie expected to appeal, delaying finalising individual cases until next year.

Bank Charges Decision

The Office of Fair Trading (OFT) has confirmed that it will announce its decision on unfair bank charges this Thursday. The OFT is deciding whether unauthorised overdraft charges fall under the Unfair Terms in Consumer Contracts Regulations.

Once the decision is revealed the watchdog will decide on the next steps to take.

Unfair Charges Test Case

The test case for unfair bank charge claims has started, with banks defending their position saying that customers agreed to the charges when they opened the accounts, therefore they are allowed to enforce such charges.

Charges can reach as much as £38 for slipping slightly into the red, whilst campaigners claim the real cost to the banks could be as little as £2.50.

An army of legal advisors is representing banks were in court to defend the eagerly awaited case.