Informal (unauthorised) overdraft charges
Test case update
25th November 2009 - Update following the Supreme Court Judgment
The Supreme Court has supported the banks’ appeal and ruled that informal (unauthorised) overdraft charges are not assessable for fairness under the Unfair Terms in Consumer Contracts Regulations (UTCCR). The Court overturned the previous rulings made by the High Court and the Court of Appeal.
This decision provides clarity for both our customers and the industry on the issue of informal overdraft charges.
As a consequence, all customer complaints relating to informal overdraft charges are no longer on hold and will now be dealt with in line with FSA complaint handling requirements. Customers who have complained do not need to do anything at this point.
What will happen to my complaint which has been on hold?
The Supreme Court judgment brings the test case process to an end. As a result, we can now resume processing customer complaints. We will be writing to all customers impacted by this ruling with a response to their complaint within the timescales permitted under the FSA complaint handling regulations.
What will happen to my personal court case?
For the small number of customers who commenced individual court cases that were on hold until the test case process was concluded, these cases are being reviewed and will be dealt with in accordance with the court process.
I am in financial difficulties – what can I do?
If you are experiencing financial difficulties, contact us – the sooner the better. We work with a number of free advice agencies to help customers who are experiencing problems. Find out more about dealing with debt .
Can I still complain about informal overdraft charges?
Yes. Customers can register a complaint about informal overdraft charges and this will be processed in line with our complaint handling guidelines.
Where can I find out more?
We shall continue to post updates on our website to keep customers informed of progress on the Supreme Court judgment.
Alternatively, you can find more information through the following links:
The Supreme Court:
www.supremecourt.gov.uk
The Financial Services Authority:
www.fsa.gov.uk
The Office of Fair Trading:
www.oft.gov.uk
The Financial Ombudsman Service:
www.financial-ombudsman.org.uk
British Banker's Association
www.bba.org.uk
All Judgments are available via www.judiciary.gov.uk
