We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Bank Charges case upheld
Options
fischer79
Posts: 70 Forumite
Does anyone know whats happening here:
http://news.bbc.co.uk/1/hi/business/6657025.stm
bit shocked when i read this
Official Insert
Martin has written a full blog on the impact of this... to read it: Read Bank Charges first loss, does it mean anything?
http://news.bbc.co.uk/1/hi/business/6657025.stm
bit shocked when i read this
Official Insert
Martin has written a full blog on the impact of this... to read it: Read Bank Charges first loss, does it mean anything?
0
Comments
-
Despite not even turning up to court, Lloyds TSB has become the first bank to win a case brought against it by a customer for overdraft charges.
I'm not sure how it could have won - the customer turned up, the bank did not.
Details here:
http://news.bbc.co.uk/1/hi/business/6657025.stm
Wonder what implications this will have? Banks now starting to defend claims?0 -
sounds like the judge's personal feelings over the legitemacy of the charges has clouded his view.
wouldn't be surprised if the ruling is over turned.
It's certainly not putting me off.0 -
I'm waiting on my claim with Barclays, just my luck something like this happens.
My view is that this is one case out of thousands and could possibly be down to the judge being a bit behind the times (probably had to ask the usher what an overdraft was). I hope the guy goes for an appeal because I still think the Banks would run scared should this happen. They really can't afford to lose a case in court.
0 -
Interesting that the bank chose to defend the action. I though banks usually backed out of such actions at the last moment for fear of setting a 'perceived precedent' (I say 'perceived' as I don't think County Court Judgements are binding).
The interesting thing will be seen should the case go to the High Court and the claimant wins. That would set a precedent that I think County Courts would have to follow and may add fuel to the judgement reached in another court and mentioned on 'Working Lunch' today, where a judge said he would order damages against banks who defended actions until the day of the court hearing and then backed down.0 -
Not good news, but it is only one case, one judge, and it does not set a legal precedent - although the banks will try to make out that it does, of course.
I cannot help but wonder if the claimant included the bit to the effect that, " ... if they are service charges, they must be reasonable ... " in their claim?
Would the appeal judgement be at a level to set a legal precedent? If so, and the appeal is upheld ...The acquisition of wealth is no longer the driving force in my life.
0 -
Hendrix_lennon wrote: »sounds like the judge's personal feelings over the legitemacy of the charges has clouded his view.
wouldn't be surprised if the ruling is over turned.
It's certainly not putting me off.
My thoughts entirely! There is no way anyone with an ounce of common sense can say charging me £35 + plus £20 for going over my overdraft limit, i.e. £55 for going 56p over my limit was justified!!
I wonder if the guy used this website - maybe he didn't back his claim up with all the legalese we've been lucky enough to learn about here...0 -
0
-
Dear All
This is an interesting article I've found today on the BBC News Website !
'Bank's overdraft charges upheld
Lloyds TSB has become the first bank to win a charges case
Lloyds TSB has become the first bank to win a court case after being sued by a customer for imposing supposedly unfair overdraft penalty charges.
District Judge Cook, at Birmingham County Court, dismissed a claim for £2,545 from Kevin Berwick.
Mr Berwick argued Lloyds TSB's charges for having an unauthorised overdraft were illegal contractual penalties.
But Judge Cook decided the bank's charges were in fact legitimate fees for servicing an overdrawn account.
As such, the judge said they were legal.
"Having held that the charges complained of are not charges for breach of contract but part of the price of the services provided by the bank....he has not satisfied me that he has any ground in law for recovering from the bank the amount of any charges which he has paid to it," he said.
Mr Berwick said he was annoyed by the outcome. "I was expecting to win as I made a good job of arguing my case," he said.
He is now considering an appeal after the judge gave him leave to do so.
Blow to claimants?
As this judgement has come from a district judge, it is not binding on any other court, in the way that a High Court judgement might be.
However, as the first judgement of any kind in this sort of case, it could be a blow to the hundreds of thousands of people who are still trying to claim that they have been overcharged by their banks for running unauthorised overdrafts.
So far, many claimants have been successful because their banks have settled their cases before the issue came before a judge, precisely in order to avoid an adverse legal decision.
Now, the first decision in which a judge has given an opinion on the law has gone in a bank's favour.
Marc Gander, of the Consumer Action Group, a leading bank charges campaign, said he was very disappointed.
"We feel the judge has not considered the fact that disguising penalties as a fee for a service is a very common device for circumventing established law.
"The judge appears not to have looked behind the words on the contractual document," he said.
Although Mr Berwick turned up at the original hearing in Birmingham to argue his case and was questioned by the judge, Lloyds TSB chose not to attend and relied simply on a written defence which it had submitted in advance.
Neither did the bank have any lawyers present in court when the judgement was handed down'.
Should we start to feel worried now?0 -
It really strikes me as odd that the judge would get involved. Obviously he is trying to make a name for himself.
It would be helpfull to hear Martins view on this. I really can't see how the judge has come to this decision.0 -
0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 351.1K Banking & Borrowing
- 253.2K Reduce Debt & Boost Income
- 453.7K Spending & Discounts
- 244.1K Work, Benefits & Business
- 599.2K Mortgages, Homes & Bills
- 177K Life & Family
- 257.5K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards