Banks should throw in the towel, says Which?
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Banks should throw in the towel, says Which?
As the judges in the bank charges test case appeal rule in favour of the OFT,
Which? chief executive Peter Vicary-Smith, says:
“The courts have made it clear the banks should now throw in the towel. This case has been going on too long and it’s about time they tried to regain some of their dignity and paid customers their dues.
“This whole saga has severely damaged the banks’ reputations. If they try to appeal in the face of such a clear decision, they will suffer further losses in the court of public opinion.”
What will happen next?
The banks have the option to appeal the decision at the House of Lords. If this happens then the FSA waiver* is likely to remain in place during the appeals process. This means that all pending cases in the county courts or with FOS are likely to stay on hold and banks will continue to charge overdraft fees.
If the banks decide not to appeal, then their Terms & Conditions will be assessed for fairness. Where current terms are unfair, the OFT will agree a fair charging regime with the banks – effectively placing a cap on the level of overdraft fees. This will be similar to the approach taken for credit card late payment fees.
*The FSA waiver, which has been in place since the test case was announced in July 2007, means that banks can continue to charge people for slipping into an unauthorised overdraft while consumer complaints remain on hold. If the banks decide to appeal, then it is highly likely that the waiver will remain in place until the appeals process has run its course.
Which? is the leading independent consumer champion in the
