Bank charges decision goes against customers

02/04/2009

Customers involved in a High Court case to claim back overdraft charges from banks have hit a new setback.

The House of Lords gave banks permission yesterday to dispute a previous decision from the Court of Appeal - which said that banks were covered by laws obliging fairness in contracts.

This verdict had made it more likely that the claimants would get their money back.

All charges claims have been frozen since 2007, with their outcomes dependent on the result of the High Court case.

Consumer group Which? expressed disappointment at the decision.

Personal finance campaigns manager, Doug Taylor said: "It's outrageous that public money is being used to drag this saga out for even longer when the banks should accept the Court of Appeal's decision and draw a line under this issue once and for all.

"Not only are the banks prolonging the misery for their customers, many of whom are struggling to make ends meet, they are doing further damage to their already battered public image."

James Caldwell at Fairinvestment.co.uk, a financial website, added: "This latest news is just another delaying tactic by the banks, the test case has been going on for long enough now."

Tags; Debt Management and Banking, Young Family Finances, Recent Graduate Debt,

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