OFT test case(from government white paper on Reforming financial markets)

natweststaffmember

Box 8.C: The OFT’s test case on bank charges

More than one million complaints about bank overdraft charges are outstanding.
The OFT and the banks agreed to a test case in July 2007 in order to resolve issues
concerning the general application and interpretation of the Unfair Terms in Consumer Contracts Regulations 1999. The OFT will be able to challenge the future use of bank charges that is considers to be unfair if the outcome is in its favour.
The case is in two stages. Stage one considers whether unauthorised overdraft charging terms can be assessed for fairness under the Regulations. This stage has now reached the House of Lords. Depending on the outcome, stage two will establish whether the terms are unfair. Once the application of the Regulations is clarified, customers will be able to pursue their complaints against the banks if they consider that the outcome is in their favour.
One way to determine the fairness of the bank charges in the OFT’s test case is for litigation to continue until it reaches a conclusion. However, this may take some years. Subject to the outcome of the stage one proceedings, the Government therefore calls on the regulators and the banks to explore whether there is a quicker way of resolving these cases that is preferable for customers to pursuing further litigation, and provides the certainty that regulators and banks need. The Government will also work with interested parties with a view to moving the market to a more efficient, equitable, and transparent system as quickly as possible"
http://www.hm-treasury.gov.uk/reforming_financial_markets.htm
Page 115

I have highlighted the key aspects for you

mikeandrach_2

what impact do you think this may have to the likelihood of charges being refunded, and the speed at which they may be refunded

Knackered

Stage one and two sound exactly the same to me.

natweststaffmember

mikeandrach wrote: »

what impact do you think this may have to the likelihood of charges being refunded, and the speed at which they may be refunded

impact as to the white paper from the government, None whatsoever.

natweststaffmember

Knackered wrote: »

Stage one and two sound exactly the same to me.

Stage one: are terms assessable for fairness?
Stage two: which terms does the OFT believe are unfair?