OVERDRAFT CASE

A test case on the law relating to unauthorised overdraft charges has been launched in the High Court this week by the Office of Fair Trading (OFT). The OFT is asking the court to decide whether the fairness test in the Unfair Terms in Consumer Contract Regulations 1999 (SI 1999/2083) applies to overdraft charges, although it will not lead to a judgment about whether the charges themselves are fair or not. The case is part of the OFT’s ongoing investigation to determine whether or not unauthorised overdraft charges are fair. The OFT will publish its market study on the current account market by the end of the year.