OFT Bank Charges Test Case

The OFT bank charges test case was launched in January 2008 and reached a verdict on April 24th 2008. The judge, Mr Justice Andrew Smith, ruled that bank charges are covered by Unfair Contractual Terms rules which was a victory for bank charges reclaiming. Although the verdict is in favour of bank charge claimants, the OFT bank charges test case result does not necessarily mean that all bank charges are unfair.

Further hearings are expected to follow the OFT bank charges test case to decide exactly how much a bank should charge when somebody bounces a cheque or exceeds an overdraft limit. The banks involved which were, Barclays, Abbey, Clydesdale, HBOS, HSBC, Lloyds TSB, Royal Bank of Scotland Nationwide may still appeal the decision, and until they have decided all bank charge claims will remain on hold.

To find out the latest developments on the OFT bank charges test case, read our latest banking news.