Banks – can’t live with them, can’t live without them!!

They have become even less ‘cuddly’ after the court ruling on unauthorised overdraft charges.

It all started when the OFT decided to look into the fairness of these charges, under the regulations implementing the EU’s directive on unfair terms in consumer contracts.

Unfortunately, the consumer watchdog chose the wrong angle for its investigation: the banks objected that it could not, under regulation 6, question the ‘value for money’ aspect of the charges.

But the two real shockers are this

1 – The banks hired eight QCs between them and a fleet of juniors, which means the costs will be stratospheric and the OFT will be landed with the bill.

2 – The court also suggested that the OFT might nevertheless have a case under a different regulation, regulation 5, which would allow it to assess the general fairness of the charges. But it will take a brave chief executive to start all over again on this basis.

This is not only a costly funeral for a high profile case, it will further erode the status of the OFT as an effective consumer champion, while comforting large corporations that they can take on government bodies and win.

Do you feel done over by your bank?

Contact Hylton-Potts today on 020 7831 8111 for advice on your next step forward