Newsroom

OFT test case on unauthorised overdraft charges - hearing commences in High Court

6/08    14 January 2008

The OFT’s application for a declaration on the law in respect of unauthorised overdraft charges is due to commence this Wednesday 16 January 2008.
 
The purpose of the application is to get a ruling on whether the provisions of the UTCCRs (Unfair Terms in Consumer Contracts Regulations) that deal with unfairness, apply to unauthorised overdraft charges, and will not address whether terms and conditions or specific charges of individual banks are unfair. However the OFT is continuing to analyse information supplied by the banks, and further information on the investigation into unfairness will be published after the judgment has been delivered and OFT has had time to consider any implications.

The application for the declaration is brought against: Abbey National plc, Barclays Bank plc, Clydesdale Bank plc, HBOS plc, HSBC Bank plc, Lloyds TSB Bank plc, Nationwide Building Society and Royal Bank of Scotland Group plc. The hearing is expected to last three weeks with judgment to follow some time later.

The OFT has published information about the case that further explains the work on bank personal current accounts.

NOTES

1. The case will be heard at the International Dispute Resolution Centre, 70 Fleet Street, London EC4Y 1EU.

2. The case, which will decide if these charges are covered by UTCCRs, has been bought following an agreement between the OFT and the banks taking part. Download the full text of the agreement (pdf 51 kb). 

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