Debt collectors called in over unfair bank charges


Some consumers claiming a refund of their overdraft charges are now receiving a further attack by their Banks in terms of being chased through the Courts or by debt collection agencies for outstanding charges on their accounts.

Since July 2007, consumer attempts to claim back unfair bank charges have been met with disappointment following the waiver authorised by the Financial Services Authority (FSA) enabling the Banks to place any claims in relation to overdraft charges on hold until the final conclusion of the bank charges test case.

The test case is now due to be heard by the House of Lords, despite both the High Court and Court of Appeal judges ruling that the issue of whether charges are fair or unfair should be one that the Office of Fair Trading can decide upon.

Consumers will therefore have to wait again for at least several months before the House of Lords judgement will be delivered. In the meantime, banks continue to benefit from the waiver and place all claims against them in relation to charges on hold.

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