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Consumer Law Blog

Bank Charges Decision - What Happens Now

by Elliot 26 November 2009

The last few days have been both shocking and confusing.  The Supreme Court ruled that the OFT cannot assess whether bank charges are unfair or not.

Millions of consumers are now begging the question 'will I get my money back'?

At Claims Financial we represent more than 36,000 such claimants and it is very confusing.  On the one hand major news papers are declaring 'the end has come', but in the other corner Martin Lewis, a consumer campaigner says there may be hope of other legal challenges.  This is supported in part by comment by the Surpeme Court Judge.

More importantly, we have personally spoken to 8 banks and they have told us that financial hardship cases (people whose income is less than their expenditure) will continue to be looked into.  Offers continue to be made, and customers continue to get some refunds.  Very confusing.

The current situation would appear to be that  it is likely that the OFT will use political pressure to force the banks to lower their charges in the future, but it is very uncertain as to whether this will extend beyond 'hardship' cases in the past. But only time will tell.

The real thing we are waiting for is for the FSA, who regulate the banks to make a clear statement of intent. They cannot ignore the ruling but one would hope they cannot ignore either 8 million consumers.  Afterall, we are meant to be a democracy.

In the meantime consumers have nothing to lose by engaging a claims company providing there are no upfront fees and a FREEPOST envelope.   We agree with the Guardian newspaper who warned against engaging companies who charge upfront fees.

Finally, we must remind all readers that credit card charges can still be reclaimed as can mis-sold loan insurance.

Claims Financial

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