MSE News: OFT 'to drop' bank charges case

[Deleted User]

Chrysalis wrote: »

We are worse off I believe.

Various cases were put on hold for no logical reason other than to give the courts a break.
Now individual cases can proceed again but there will be a much higher failure rate as judges will possibly use the supreme court case as a precedent.

The OFT ball'sed up plain and simple.

No they haven't they simply can't take it forward as the argument of fairness comes down to individual cases and not the product overall, which is why they can't take the case forward. The judges can't take a SC's verdict into any real consideration if peoples POC's are changed as they are effectively a different beast altogether.

Morglin

There is a victory of sorts - the banks have said that they will look at charges - and that's something that will help all customers.

But, the bottom line is that if someone signs up to something, after reading the T&C's, it's been judged that, in that case, it's pointless moaning afterwards, which is fair enough.

Lin

natweststaffmember

http://www.channel4.com/news/articles/business_money/bank+charges+why+the+oft+think+itaposs+not+over/3475847

Read the article and listen to John Fingleton who is from the OFT. It is very much an interesting interview with Channel 4

davidgmmafan

"I don't agree with you on this on the legal fiction. Many of us are non legal people so it is for those with the legal knowledge to explain to us"

Oh come on all the banks change thier T & C's from saying things like you MUST NOT MISUSE YOUR CARD, you must have cleared funds in to cover a DD etc etc to we provide a service... blah blah blah, informal request. The same thing happens, but under one set of T & C's it sounds very much like a penalty, under others it does not.

I admit I was wrong about the QC, that comment was I believe made at the outset of the test case, and clearly I am not acquinted with the later developments.

"Nowadays, its far less than that but the charges are still high. However, that doesnt make the charges unlawful. Lots of businesses and professions have high charges on things."

I totally agree many firms have high charges however what nobody except the banks are able to do is appoint themselves priority creditor. Thier service charges are more important that your mortgage/rent or utility bills. If the banks invoiced seperately for charges then this snowball effect could not happen.

Hands up how many people think they will do that... They could also simply not honour any payments (or at least the majority) where funds are not present. Again they won't as its all about money.

The switching argument is so lame, I'm surprised it was made. Same argument applies as with energy suppliers really, if they are all dreadful the choice is not of much value.

"Banks didn't state this, QC Sumpton suggested that it would be the possible restitutionary damages, ie a secondary issue that could lead to the change in the business model of the banks to "free if in credit" to a fee based structure. Furthermore, the charges themselves do not pay for the current account as a whole and if you read OFT 1005c you will find out the details of it."

Erm wouldn't something said be thier legal representative be the banks position? I am also fairly sure there were statements to this effect by the BBA.

"Its just like with credit cards the people who pay thier cards off in full don't make much at all (if anything) for the bank. The big bucks are in the fees and the people who just pay the mimimun each month.
Which is a legal mechanism ie the interest."

I was not suggesting that credit card interest is in anyway illegal. My point was the holier than thou brigade enjoy perks because the banks make thier money elsewhere. If everyone was like them then we could see a return of fees for credit cards and the rolling out of charges for bank accounts.

I would welcome such a devlopment as the banks would be shooting themselves in the foot. In my view many people let things go because of the 'free' service. As soon as they see themselves paying for it they will complain more and, I hope, be more likely to switch.

BTW why can't an account be closed if it is overdrawn? Credit card manage fine if they change the terms and a customer wishes to cancel or if payments are not recieved for a long period...

PS where can I find this OFT report? I tried to find it after seeing it mentioned on CAG but had no luck.

PPS Why didn't the OFT just refer it to the competition commission in the first place???

natweststaffmember

!!!!!!, I read this on the other thread....which report do you want?

davidgmmafan

"Well given that whole thing was going MUCH better before the OFT got involved one could make the argument that they are useless and cocked it right up. All they managed to do is get claims, which people were winning even when they were heard in court, on hold for several years.
That's right people didn't bother to turn up in court and LOST, Barwick case where he did turn up and lost. We need to be better on the issue that people HAVE got to do something themselves and understand the arguments clearly cos they'll lose otherwise."

I was referring to the banks losing cases in the county court, there were reports on CAG that the banks sent representation and still lost. the one or two cases customers either messed up or did not turn up to were reported, the cases banks defended and lost were not.

I feel there has been some bias in the reporting, every victory by the banks minor or major was hyped up. Consumer victories were not.

On the whole lower charges is a win, but it still offends me to hear the rubbish the banks come over with. Request and OD they know some people will be turned down whatever the circumstances. Don't incur charges, but you just said you need the charges for free banking.

The biggest thing of all is why should bank service charges come off the topline???? Can anybody answer this.

I know I posted it there in error and have now edited it. The 1005 you made reference to.

natweststaffmember

what bloody report do you want? If you can't tell me then I can't tell you, !!!!!!.

natweststaffmember

http://www.oft.gov.uk/shared_oft/reports/financial_products/oft1005c.pdf
The above is about how Personal current accounts are financed, page 7 is probably what you are after.

davidgmmafan

Thanks, very interesting reading. I had no idea they made so much from having cash in the account.

natweststaffmember

davidgmmafan wrote: »

Thanks, very interesting reading. I had no idea they made so much from having cash in the account.

You're not the only one either