Courts to decide on overdraft charges imposed by banks
January 14th, 2008 by GilesThe OFT (Office of Fair Trading) has applied to the court for a ruling in respect of unauthorised overdraft charges. The hearing is due to start on Thursday 17 January.
The purpose of the application is to get a ruling on whether the provisions of the UTCCRs (Unfair Terms in Consumer Contracts Regulations) that deal with unfairness, apply to unauthorised overdraft charges, and will not address whether terms and conditions or specific charges of individual banks are unfair. However the OFT is continuing to analyse information supplied by the banks, and further information on the investigation into unfairness will be published after the judgment has been delivered and OFT has had time to consider any implications.
The application for the declaration is brought against: Abbey National plc, Barclays Bank plc, Clydesdale Bank plc, HBOS plc, HSBC Bank plc, Lloyds TSB Bank plc, Nationwide Building Society and Royal Bank of Scotland Group plc. The hearing is expected to last three weeks with judgment to follow some time later.
The OFT has published more information about the case and has a website section that explains more about the work on bank personal current accounts. Download a copy from http://www.oft.gov.uk