Submitted on Thursday 24th April 2008
Banks lose overdraft argument
A judge has decided that the OFT can rule on the fairness of charges which customers have been trying to reclaim.
Justice ANdrew Smith pointed out that this ruling did not prove the charges were wrong.
The banks have a couple of months in which to decide if they should appeal.
This is a test case from last year and thousands of claims await its outcome. The OFT agreed to test its powers in court and has definitely won the first round.
Unauthorised overdrafts generate an estimated £3.5b a year in charges and if the banks lose this income they will no doubt seek to balance the books elsewhere.
