OFT and Banks to decide on "fair charge"

rusky1_2

Now i really dont no what to do, my bank put half what i claimed in my account yesterday and i havent even had an offer yet can i say i'll accept it without prejudice and see what happens after the test case please help !

Palerie-head

I can't believe this! I have just literally posted a letter to my county court asking them to rule in my favour as HSBC hadn't entered a defence - I'm claiming just short of £5000 with interest and it has cost me over £200 so far with the MCOL fee and the allocation fee paid to the county court, so if I don't get a settlement now I'm well out of pocket. I can't imagine the court ruling in my favour now because of the pending (and no doubt dragged out over every tiny detail) case going ahead now.

To say I am gutted is a massive understatement.

brightonman_2

Edinburghlass is right though: we're all in shock at the moment (including Martin, I gather, though I just missed his piece on C4 news by about 2 minutes!)

In the long run, this is precisely the kind of test case we've all been aiming for, though the way the OFT has done this without consulting what are obviously the most prominent forums such as this one and CAG beggars belief.

One can only hope that the OFT really takes a consumer-championing stance, rather than being fobbed off with the excuses that will be put forward by the mighty financial power of the banks.

dam_3

I'm raging:mad: , i sent my first letter 12 weeks ago, i have recieved 1 letter from them (only after hearing nothing for 9 weeks), had a phone conversation 1 week ago, where the guy said I would "get an offer very soon" and now this!!!! And we can't expect an outcome until the end of the year. Something very fishy is going on here if they can spring something on us like this without the like of Martin etc. not hearing about it.

meredeterre

I've just accpeted an offer from Barclays re my old woolwich account so I blimmin hope they still pay up...really need that money right now...

was going to write my letter to lloyds re my old account with them, but will hold off with that for now...

but wondering if this affects credit cards at all? We have MBNA & Egg accounts that were thinking of trying to get charges back from...does anyone know?

Sarah

brightonman_2

This is the official OFT press release, found on the CAG site just now:

OFT launches test case on unauthorised overdraft charges

106/07 26 July 2007

The OFT will tomorrow commence proceedings in the High Court for a declaration on the application of the law in respect of unauthorised overdraft charges.

See questions and answers for test case announcement.

Tens of thousands of complaints that these charges are unfair have been received by the County Courts and the Financial Ombudsman Service. The banks do not accept that the unfairness rules of the Unfair Terms in Consumer Contract Regulations apply. The OFT believes that they do and is seeking to establish this legal principle clearly in the court. The OFT considers that a quick determination of this point of principle will assist in securing a clear and orderly resolution of the fairness of these charges.

The test case complements the ongoing market study into personal current accounts, which addresses wider questions about competition and price transparency in the provision of personal current accounts.

The OFT will continue to work closely with the Financial Ombudsman Service and the Financial Services Authority, in addition to consulting with banks and consumer groups.

NOTES

1. In March 2007 the OFT announced a formal investigation into the fairness of unauthorised overdraft and returned item fees (referred to as 'unauthorised overdraft charges'). This followed on from the OFT's initial review of such charges, where the OFT concluded that it shared the public concern about the level and incidence of bank current account charges, but recognised that applying the general principles set out in 2006 in relation to credit card charges is not straight forward.

2. The other parties to the test case are Abbey National plc, Barclays Bank plc, Clydesdale Bank plc, HBOS plc, HSBC Bank plc, Lloyds TSB Bank plc, Royal Bank of Scotland Group plc, and Nationwide Building Society. Together these current account providers account for about 90% of personal current accounts in the UK. The OFT has entered into an agreement with these current account providers in relation to the litigation process to facilitate an orderly and timely resolution of the legal issues.

3. The OFT continues its UTCCRs investigation into whether the level of charges is fair and will publish its findings and proposed action by the end of the year, as announced in March 2007.

4. If, in the light of the UTCCRs investigation, the OFT decides to take action because it finds the charges to be unfair but is not able to secure voluntary compliance, it will proceed to a second stage court case applying for a ruling that the charges are unfair.

5. In the course of its work on the issue the OFT has liaised closely with the Financial Services Authority and Financial Ombudsman Service and has also held discussions with the main banks. The FSA is announcing today that it is issuing a waiver from its complaints handling rules that apply to unauthorised overdraft charges, following the OFT's decision to initiate a test case.

5. The OFT's market study is taking a holistic look at whether the personal current account market is working well for consumers. In particular it will assess the extent to which consumers help drive competition. The market study is currently in its evidence gathering phase, and the OFT will publish its findings by the end of the year.

Official OFT Press Release.

cillitbanger

I think the consensus is, that if you are going to court yourself carry on as usual until you are advised otherwise (bear in mind your case may be stayed) but dont use the fso to claim.

devil26

I just checked on mCOL and Nationwide have acknowledged my claim. Logged on to check my credit card account and MCOL have refunded my £120 court fee. So all of this has been planned for a while between the courts and the banks. I can t see a fair result coming out of any dealings between these institutions. They have already been doing underhanded deals. We should all insist on our right to be paid wages in cash and cut out these greedy middlemen ( Banks )

Tootie_Fruity

MadFish wrote: »

but then we have the problem of where does that money come from, the fatcats pockets or lower interest rates, higher mortgage rates etc. (i know where id put my bet, if i had any money)
the way i see it at the moment we may win our refunds but will prob lose out in the long run with the banks trying to make back there losses.
Am i wrong here......

You're spot on. They are banks. They will make everyone pay one way or another.

aunty_Charging

After watching Martin on TV I went stratight to the OFT website where you can view "Everything" that is relating to the court process tomorrow, the bank agreement, arrangements for the test case.

Go to www.oft.gov.uk

My claim has been ongoing since March and is with the ombudsman for 3/4 weeks now. I have been treated appallingly by Abbey