Economic effect to country if all charges paid back?

cdfulton

What do you think the economic effect there will be to the UK if the basnks are ordered to pay back charges?
This figure is £10Billion.
Surely this would be major boost to the economy and aid recovery as a significant portion of that will be spent.

Is there a down side?

natweststaffmember

cdfulton wrote: »

What do you think the economic effect there will be to the UK if the basnks are ordered to pay back charges?
This figure is £10Billion.
Surely this would be major boost to the economy and aid recovery as a significant portion of that will be spent.

Is there a down side?

Since the Supreme Court are not deciding on refunds of charges the question is completely irrelevant at the moment.

cdfulton

I am sure government economists must be looking at the liley impact if it goes afainst the banks and we are repaid

krisskross

I think most of the money would stay with the banks even if charges are repaid. The banks will be expected to return the accounts to what they would have been minus charges. So any debt to the bank will be discharged first I would think.

natweststaffmember

cdfulton wrote: »

I am sure government economists must be looking at the liley impact if it goes afainst the banks and we are repaid

That might be the case but if the Supreme court states that the charges can be assessed for fairness it does not mean a refund of charges until the courts at a later stage decide which terms are unfair and other associated issues.

Alpine_Star

cdfulton wrote: »

This figure is £10Billion.
Surely this would be major boost to the economy and aid recovery as a significant portion of that will be spent.

£10b or even £20b is a tiny amount in comparison to the size of the UK economy and would barely register on the economic radar.