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Bank Charges Frozen Until Test Case

Posted by Tom Wilkins on Fri 7th September 2007 at 06:00 AM, Filed in Credit News

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According to the Daily Mail Judge Abrahams, at Luton County Court, forced Barclays to stop applying any more charges until a High Court test case settles the legal issues involved.

The test case is the culmination of a long running battle over unfair penalty charges. According to official figures Barclays has repaid £87m in overdraft charges this year alone. The five main banks have repaid a staggering £400m in charges since January.

“The OFT and the banks are currently involved in bringing a test case to clarify whether bank charges are unlawful. Consumer lawyers claim that the fees the bank collects when a customer goes overdrawn, or a direct debit is bounced, contravene consumer contract legislation.”

It is likely to be many months before the case is heard.

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