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18 September 2008 / Stuart Mcneill
Issue: 7337 / Categories: Features , Commercial
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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

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MOVERS & SHAKERS

Walkers—Muriel Marseille

Walkers—Muriel Marseille

Ashurst's Chief Risk Officer joins Walkers

Excello Law—John Osborne

Excello Law—John Osborne

Northern family lawyer John Osborne joins Excello

mfg Solicitors—Rebecca Rogers, Kennedy Langley & Victoria Griffiths

mfg Solicitors—Rebecca Rogers, Kennedy Langley & Victoria Griffiths

Trio of promotions announced at Kidderminster law firm mfg Solicitors

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The Financial Conduct Authority (FCA) continues to show that failing to disclose regulatory issues can attract harsher consequences than the original misconduct itself
Rejecting a generous settlement can prove an expensive mistake, as two recent high-profile cases demonstrate
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