In a victory for consumers, major high street banks have lost their test case about unfair overdraft charges.
A judge has ruled that that the Office of Fair Trading has the right, under the 1999 Unfair Terms and Consumer Contracts Regulations, to decide if bank overdraft charges are unfair. As this means that bank overdraft charges can be deemed unfair, the 300,000 customers who have filed claims have moved a step closer to receiving refunds.
Those who have claimed so far, shouldn’t rush to their banks demanding money, however, as this is only the first step in a number of court cases that may eventually lead to a payout by the banks.
With an estimated £0.5 billion at stake, you can be certain that the banks will twist and turn to avoid paying out, particularly in these difficult financial times. However the fact remains, that the banks have lost this test case and may eventually succumb to the power of the consumer.