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Banks face £20bn bank charges refund

Test case decision imminent

The major banks face paying back £20bn worth of unfair bank charges to their customers, says the Money Mail.

The banks are expected to foot the massive bill if the Supreme Court rejects their appeal in the ongoing test case.

The Supreme Court's decision on whether the OFT can assess bank charges on fairness is expected any day now and things are looking bleak for the banks who have already seen several appeals rejected by the UK courts.

The banks have so far refused to disclose how much they would have to refund to their customers if they lose the case. But using inside industry data the Money Mail has calculated it to be close to £20bn - or £450 per customer.

Tony Hazell, of the Daily Mail, said: "The implications are stunning. This could seriously strain the finances of some of the biggest semi-nationalised banks."

Over £1bn was refunded to customers before the test case began and the reclaiming of bank charges was suspended. It is estimated that there are now over 1m claims currently on hold.

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