header-logo header-logo

18 September 2008 / Stuart Mcneill
Issue: 7337 / Categories: Features , Commercial
printer mail-detail

An expensive fight

Banks cannot afford to lose their battle with the OFT over bank charges, says Stuart McNeill

In April this year judgment was handed down in the first part of the eagerly awaited test case brought by the OFT against the UK's leading high street banks seeking a ruling on the fairness of their unauthorised overdraft charges (Office of Fair Trading v Abbey National plc and others [2008] EWHC 875 (Comm), [2008] All ER (D) 349 (Apr)). Eight banks had asked the OFT to bring the test case, partly to limit the huge number of cases that were being taken by aggrieved customers in county courts all over the UK—which were stayed pending the decision—and partly to try to bring certainty to a revenue stream estimated to gross them around £2.6bn in 2006. Although the initial press coverage suggests that the OFT was successful, this is only part of the story.

The test case

The test case sought a ruling on whether the charges, both historical and current, were: (i) caught by the Unfair Terms

If you are not a subscriber, subscribe now to read this content
If you are already a subscriber sign in
...or Register for two weeks' free access to subscriber content

MOVERS & SHAKERS

Flint Bishop—Charlotte Harris

Flint Bishop—Charlotte Harris

Sheffield expansion continues with appointment of commercial property partner

Browne Jacobson—Paul Duggan

Browne Jacobson—Paul Duggan

Browne Jacobson strengthens banking and finance practice with latest partner appointment Paul Duggan

Ward Hadaway—Chris Piggott

Ward Hadaway—Chris Piggott

Employment partner joins Ward Hadaway

NEWS
The Law Society RFC Festival of Sport returns next month, bringing together legal and financial services professionals for one of the sector’s largest annual sporting events
Legal aid deserts leave almost one in four without adequate access to justice
The Solicitors Regulation Authority (SRA) has warned solicitors and law firms that using artificial intelligence does not alter their professional obligations, amid concerns over inaccurate legal material and client confidentiality
From forgotten interest claims to case-management appeals, a string of procedural developments offers useful—and occasionally cautionary—lessons for practitioners

Jonathan Fisher KC highlights that it now accounts for around 40% of criminal offences, with roughly 70% involving technology, and argues that the UK cannot simply prosecute its way out of the problem. Detection, investigation and prosecution all require improvement, while different fraud types demand tailored responses.

back-to-top-scroll