Bank Charges
Bank Charges Litigation - Update
Bank Charges Litigation Update
The Lawyer this week likened the current bank charge litigation to the "Royal Courts of Justice's very own amateur production of Ben Hur, complete with a cast of thousands" and commented that the case "has moved a step further to coming to a grand finish."
The article continues, commenting "Ben Hur featured 8,000 extras for the famous chariot scene, while the OFT* case sees 24 barristers in total squeezed into the benches at the High Court to represent nine banks. Of those 24, 10 are silks. All we need is Charlton Heston in a toga." (*Office of Fair Trading)
In a promising development for consumers, the Court of Appeal in the test case brought by the OFT ruled that bank charges are subject to fairness rules. That means they are covered by the unfair contract legislation designed to protect consumers. The OFT is now assessing whether they're actually unfair.
The banks may still appeal to the House of Lords if granted permission, however, as commentators have pointed out, one of the banks bringing the litigation has effectively been nationalised and as such the litigation is effectively funded by the customers they are seeking to charge.
The Times comprehensively covers the story which you can access by clicking here.
For litigation advice please contact Simon Cook by clicking here.
Submitted by R McDonald on Wednesday 4th March 2009