It's Time For Banks To Pay Customers Their Dues, Says Which

As the judges in the bank charges test case appeal rule in favour of the OFT, Peter Vicary Smith, Which? chief executive says The courts have made it clear the banks should now throw in the towel. This case has

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As the judges in the bank charges test case appeal rule in favour of the OFT, Peter Vicary-Smith, Which? chief executive says:

The courts have made it clear the banks should now throw in the towel. This case has been going on too long and its 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.

L.D.

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