08457 22 44 99
In April 2007, the OFT launched its investigation into the fairness of personal current account unarranged overdraft charges under the Unfair Terms in Consumer Contracts Regulations (UTCCRs).
In July 2007, the OFT entered into a written litigation agreement with seven banks, one building society, and the Financial Services Authority (FSA) with a view to bringing a test case to ensure an orderly and efficient process for resolution of the legal issues.
The Court of Appeal confirmed on 26 February 2007 that the unarranged overdraft charging terms for personal current accounts can be assessed for fairness. The court found that these terms are not part of the core or essential bargain between a consumer and their bank, and therefore consumers do have protection under the UTCCRs for these terms.
OFT will continue to progress its investigation, in dialogue with the banks, and expects to reach a final decision on fairness later in 2009.
Further information about the test case can be found on the personal current accounts page.
Date of opening: April 2007
Team Leader: David Stallibrass (020 7211 8149, david.stallibrass@oft.gsi.gov.uk)
Project Director: Claire Hart (020 7211 8782, claire.hart@oft.gsi.gov.uk)
Senior Responsible officer: Clive Maxwell (020 7211 8950, clive.maxwell@oft.gsi.gov.uk)
Case Reference: MPS-RBU/0001
Back to: Consumer enforcement completed cases
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08457 22 44 99
