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Banks agree OFT test case

The saga of repeated claims against banks for unfair charges continues.

Over recent months thousands of claimants have received out of court settlements on claims of unfair charges for overdrafts fees. The banks have been fearful over taking these claims into court for fear of losing and a precedent being set. Well this week sees several new stories around the issue.

Firstly Tom Brennan, the newly qualified barrister who wanted permission from the courts to sue Natwest for unfair charges lost his application and has been refused the right to appeal. He had already recieved his charge fees of £2548 back and been offered a further £1600 in compensation to settle the case, but he refused wanting to take Natwest to court. That won't happen now, with Natwest's lawyers saying that his case was unsustainable in court.

At the same time in a bizarre situation, a bank charge case did go to court and Lloyds TSB, who may not even have known about the case because they failed to turn up to defend themselves, won. Because it was a district judge who decided on the case no legal precedent has yet been set.

However all that may change soon as several major banks and building societies have agreed with OFT to take a charges test case to court, so we can expect a ruling that does in fact set a precedent to follow.

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