OFT makes 'putting it on hold' announcement

MSE_Martin · 29 March 2007 at 11:25AM

Today 29 March 2007 the OFT made a statement on its long expected announcement on bank charges.

My view on it is as follows:

Why the OFT has delayed

If the OFT had made an announcement at this time it would've been an 'opinion' not a 'ruling', much as it did with the credit card announcement last year; to do that and have any effect, it would've needed the banks to agree to support it. My suspicion is that as this was unlikely to happen here, the OFT has decided to take a longer and more detailed study of the complexity of the banking system.

This means when it does make an announcement, rather than the credit card charges 'one-size fits all' recommendation; it could be a bank by bank recommendation. It also means there is the possibility that as its made a detailed study, if banks aren't willing to comply, then it may seek to force them using its powers to go to Court and try for a ruling.

(Update Note 3 April 07: I wrote a blog on this for The Times Consumer Central Blog with a little more detail)

What it means for those wanting to reclaim

This means the clarion call is still reclaim, reclaim reclaim. Anyone who has had bank charges in the last six years should be using the free template letters available to write to the banks and demand their money back.

Martin

Full step-by-step guide to Bank Charges Reclaiming

Lorne · 29 March 2007 at 11:30AM

Thank you!

jillie1974 · 29 March 2007 at 11:34AM

thanks Martin. am about to start with First direct so am glad announcemnet has been delyed as i may get more back now!

Rafter · 29 March 2007 at 12:16PM

Looks like the games go on!

http://www.oft.gov.uk/news/press/2007/54-07

The OFT is not going to rule that bank charges should be £x for now but is going to do a more detailed study into pricing.

Sounds like the bank execs have lobbied No10 and No11.

Shame in my view.

R.

esmerellda · 29 March 2007 at 12:22PM

not a shame at all in my view....it wont be a one figure fits all half hearted opinion like what happened with the credit cards last april... they might actually get somewhere and make some changes with this one.

JohnnyX · 29 March 2007 at 1:09PM

I just sent my Court Allocation questionaire back today for my claim.

Does this mean that we've got longer to win our 'full' reclaims?

Cheers.

Chrysalis · 29 March 2007 at 1:11PM

well they did get somewhere with the credit cards now people are getting charged much lower fees. Simply leaving it for a year is a horrible decision and now leaves the system in a mess for longer with people having to fend for themselves making claims and most importantly continuing allowing the banks to charge vulnerable people high fees.

I sense some corruption here and the banks werent willing to give up their cash cow.

feedering · 29 March 2007 at 1:27PM

Chrysalis wrote: »

well they did get somewhere with the credit cards now people are getting charged much lower fees. Simply leaving it for a year is a horrible decision and now leaves the system in a mess for longer with people having to fend for themselves making claims and most importantly continuing allowing the banks to charge vulnerable people high fees.

I sense some corruption here and the banks werent willing to give up their cash cow.

But the credit card fees are still unlawful.

Twinkly · 29 March 2007 at 1:49PM

Chrysalis wrote: »

well they did get somewhere with the credit cards now people are getting charged much lower fees. Simply leaving it for a year is a horrible decision and now leaves the system in a mess for longer with people having to fend for themselves making claims and most importantly continuing allowing the banks to charge vulnerable people high fees.

I sense some corruption here and the banks werent willing to give up their cash cow.

I agree credit cards reduced their rates. Thanks to this site and others people are not alone in reclaiming unlawful charges regardless of the OFT decision to delay reporting. Media and internet have gone a long way to educating people of their right to reclaim and it is a persons responsibility to inform family and friends of this and support them in any they can. Such is the true nature of revolution, we all stand together (like the frogs in the song)...I digress...

Granted it leaves the banks in a position to keep charging high fees but it will have the effect of significantly encouraging the number of people who were afraid to reclaim in full due to fears about this announcement reducing their rights to to do so.

I welcome further investigation by the OFT given the seeming expectation of people for them to guide them in this matter. Until they report, as Martin says, the clarion call is to reclaim. I hope more people are encouraged to do so as word of this spreads.

Twinkly · 29 March 2007 at 1:52PM

Rafter wrote: »

Looks like the games go on!

http://www.oft.gov.uk/news/press/2007/54-07

The OFT is not going to rule that bank charges should be £x for now but is going to do a more detailed study into pricing.

Sounds like the bank execs have lobbied No10 and No11.

Shame in my view.

R.

I saw all the study I needed in BBC1's Whistleblower program last week. 9p to bounce a cheque through an automated process. £1.50 - £2.00 if done manually. Tsk Tsk.

Twinkly · 29 March 2007 at 1:54PM

JohnnyX wrote: »

I just sent my Court Allocation questionaire back today for my claim.

Does this mean that we've got longer to win our 'full' reclaims?

Cheers.

You have the same amount of time to reclaim in full as always - until consumer law changes or the level of bank charges are brought into line with actual costs

OFT makes 'putting it on hold' announcement

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