Bank Charges case upheld

Compound_2

techspec wrote: »

The judge did seem to suggest that claims against credit cards were different, in that this is a contract, due to the monthly payment required.

Although, he did not pass comment, am i right in thinking that the two are classed differently by the judge?

I have already successfully claimed against the banks, and i am hoping that this ruling would not apply in any case, to credit cards.

Yes, credit cards would be treated differently. Before the reduction to £12 and/or rebranding, many of the fines were explicitly 'late payment penalty charges' (=unlawful). In any area of business, late payment is a breach of contract.

By constrast, the judge said overdrawing wasn't a breach because the Lloyds TSB current account conditions didn’t prohibit it. It’s difficult to keep up with all the banks and their amendments, but I’m sure I’ve read words to the effect ‘you must not go overdrawn’. (As this claimant went overdrawn, I don’t think the case properly covered penalty charges for bounced payments i.e. where you don’t go overdrawn.)

The only effect of today’s judgement is that Lloyds TSB customers must be careful when running their accounts because, in the future, they’ll have to pay the charges. Claiming the last 6 years is still fair game as the new wording was not in effect for past charges. In some ways this would be the best of both worlds as it allows free banking to continue, but enables consumers to reclaim 6 years worth of unlawful charges.

Leanne200

http://news.bbc.co.uk/1/hi/business/6657025.stm

I can't believe that Lloyds TSB didn't even show up in court and just sent a letter in, the customer turned up and lost his claim!? Thats awful!

Is he really the first person to fail?

daveturney

http://www.manchestereveningnews.co.uk/news/s/1007/1007050_bank_charges_blow.html


is this correct?

i think a few people will be concerned about this, maybe a word from Martin regarding this?

did he follow steps provided by MSE or CAG?

did he screw up?

im concerned that this may set an example, as im just about to claim from 3 people this week?

thelawnet

http://news.bbc.co.uk/1/hi/business/6657025.stm

As a Lloyds customer, this is excellent news, as I have always managed my account properly and don't see why I should now have to pay more due to the irresponsible campaign for people to reclaim years of back fees.

fenwick458

i am in the middle of taking the bank to court. have been made an offer of the full amount minus the interest.

would i be wise to take this offer as i might lose?

is there any way of negotiating with them, i.e i will settle if you pay the court fees?

MABLE

Same here. Excellent news.

Stephen_Leak

May I be amongst the first to say that while I disagree with everything you say, I shall defend to the death your right to say it.

thelawnet

can I just add as well that when the credit card late fees were reduced to £12, all that happened was interest rates were put up. So people that couldn't be bothered to pay the minimum (often as little as £5) were given a better deal, while those people who were in long-term debt but paying off the bill ended up paying *more* in interest. Was this a positive result?

I don't think it was.

spender

Am I reading this right.

I have just gone through the judgement and the Plaintiff did not even submit his account details or list any of the charges he was claiming for!

No wonder the judge found in favour of the defendant, the Plaintiff was told that he had to provide these details and did not.

Therefore Lloyds did not to have to even attempt to make a defence because he had bodged it completely.

MABLE

Stephen_Leak wrote: »

May I be amongst the first to say that while I disagree with everything you say, I shall defend to the death your right to say it.

So you think it is right for someone to help themselves to the banks money without permission. I remember reading a post on this site whereby the poster had claimed back more than £2,500 in so called unfair fees and then had the cheek to moan that after receiving the compensation she complained about the bank returning one of her direct directs for lack of funds.

If I need a cheque, DD or SO paid and I know I have unsufficient funds I ask in advance for help.

Well done Lloyds!