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Banks lose charges test case
Last updated: Fri 6th Jun 2008 at 07:04
A recent court battle over the amount of money banks charge customers has come to an end.
The courts have decided that the Office of Fair Trading has the right to investigate and dictate what is a fair charge for customers who go over their agreed terms.
Until this time banks have had the right to charge to a greater or lesser degree what they want to.
Mr Justice Smith anounced his decision earlier than expected, however his decision does not dictate that charges are unfair, but the court’s decision has encouraged many to begin trying to claim back the charges the banks have made.
The OFT has estimated that banks make up to £3.5billion a year from unauthorised overdraft charges.
Thousands of cases currently have been frozen until the banks make a decision over whether to appeal or not, this decision has to be made by the 22nd May.
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