Big Victory in Hull Court :)

I've just put out this press release about todays hearings in Hull. Thought you would like to see what's happened.



Most cases settled - a victory for reclaimers

There were 44 cases to be heard, yet 37 were settled in full or nearly in full by the banks, who together paid out in excess of £50,000 to reclaimers. A remarkable victory, considering the judge was considering throwing these out of court. Most importantly, these included Lloyds TSB, the bank that had a decision in its favour in the now infamous Berwick case in Birmingham.

Strike out order abandoned for the remaining seven

Of the seven cases that were heard in the Hull court by Judge Ian Beresford, four were with the Yorkshire/Clydesdale bank which had lawyers in court to defend, and three were with Alliance & Leicester (which did not turn up). All seven claimants are being represented by the QC appointed by the joint MoneySavingExpert.com and Consumer Action Group fighting fund.

While the lawyers for the Yorkshire argued the 'strike out' order should stand, the judge agreed not to strike the cases out (in other words he permitted the case to be heard). He also agreed to accept new 'particulars of claims', drafted by the legal team, adding to the claimant’s professionalism. The banks have 28 days from the 11 July to put in a written defence.

The judge has ordered full disclosure from the banks

Most importantly, the Judge ordered the banks to make a full disclosure on charges by the 28 September. This means they need to reveal how they arrive at their penalty charges costs, their internal cost structures and all analysis done on costs. This is a major victory for the bank charges campaigners.

Martin Lewis, creator of MoneySavingExpert.com says, "While we've seen disclosure orders before, this time the Yorkshire bank turned up in court and has stated it wants to defend. We're chomping at the bit to read the internal details of why its penalty charges are so huge. It now has a simple choice: either break rank with other banks and be the first to truly reveal its costs, or face an embarrassing climb down and settle. Either way, it’s great news for bank charges reclaiming."

Marc Gander, co-founder of the Consumer Action group says, "It was a very exciting day to sit in court, watching argument from both sides about bank charges. We're delighted it appears the Yorkshire bank has decided finally to stand firm and allow a test case to go to court. It appears we're getting nearer to a real court decision being made and I wholeheartedly believe that when that happens millions of people across the country will benefit, because everyone should be able to reclaim charges."



Free Web resources for the public:

Bank charges reclaiming guide, letters and video: www.moneysavingexpert.com/bankcharges
Detailed legal explanation, case letters and case preparation: www.consumeractiongroup.co.uk
Govan Law Centre in Scotland: www.bankcharges.info







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Bank charges reclaiming campaigners are eagerly awaiting the results of a landmark hearing scheduled in Hull County Court today.

District Judge Ian Besford had written to claimants saying he was considering “striking out” 44 claims as they disclosed “no reasonable prospect of success” in light of the recent Berwick v Lloyds TSB decision (where a Birmingham court was the first not to award a reclaim). This means these people’s cases wouldn’t even be heard.

This direct challenge to the legitimacy of the entire bank charges campaign has been met head on by the two leading free reclaiming websites:

• Fighting fund activated for the first time and top QC appointed. The £100,000 bank charges joint campaign fighting fund is in action for the first time, paid for by the UK’s biggest money website MoneySavingExpert.com and bank charge reclaiming specialist site Consumer Action Group via the Glasgow based Govan Law Centre. Raymond Cox QC has been appointed to head the legal challenge.
• Banks settling cases to avoid a hearing – a victory already. As at 10am on 4 July, of the 44 cases being heard, the bank charge campaigners have managed to contact and help 34 and provide them with the QC's legal help. This has left the banks running scared: 35 of the 44 cases have already agreed full or nearly full settlements valued at over £50,000. This includes settlements from Lloyds TSB, Barclays, HSBC, and Alliance & Leicester – already a major victory.
• Possibility of UK test case. We welcome the fact both Yorkshire and Clydesdale banks have indicated they may defend four cases. Our legal team is supporting the four claimants and has been told by solicitors for the Yorkshire and Clydesdale Banks that they will be represented in court to oppose all bank charge claims against them. This would be the first time both banks and campaigners have sent top lawyers to argue in court. Yet of course a test case relies on the willingness of individuals, and campaigners will always put complainants' financial welfare first.
• A hearing on this case should help diminish the legal sentiment behind Berwick. Provided the banks do not settle all the cases, the campaigners' legal team hopes the judge will rule the cases can proceed and will refuse to apply Berwick. While Berwick did not look at the actual bank's terms, detailed work on providing and analysing those has now been done and will be presented. Plus it is hoped the judge will force the banks to disclose the internal analysis they've done to justify their charges and the costs. If the banks comply it will be the first time they have disclosed these matters.