| On November 25th Lord Phillips, President of the UK | | | | Supreme Court ruled against the Office of Fair Trading |
| Supreme Court, announced that it is not illegal for | | | | (OFT, representing the consumer), Lord Phillips said, 'It |
| banks to punish customers who go over their agreed | | | | may be open to the Office of Fair Trading to assess |
| overdraft limit. | | | | the charge under other criteria' |
| The Supreme Court's shock ruling was based on the | | | | Lord Phillips' comments can be read as a pretty |
| logic that when a customer opens a bank account | | | | transparent invitation for OFT to pursue other legal |
| they agree to the bank's conditions and therefore the | | | | arguments in order to secure victory for the consumer. |
| banks have no case to argue on whether their | | | | Arguably the strongest of these arguments is an |
| charges are 'fair' or not. | | | | accusation against the banks of price fixing. |
| This decision went against two previous rulings by the | | | | All the banks charge their customers roughly the same |
| High Court and the Court of Appeal and dealt a | | | | for unauthorized borrowing, and as these charges |
| hammer blow to over 1 million UK bank customers | | | | bear no relation to any actual cost and can therefore |
| claiming an average refund of £1500 - a combined | | | | be deemed as unreasonably high, there may be a |
| total of £1.7 billion. | | | | case to force the banks to refund your charges |
| UK banks have hit customers with charges totalling | | | | because collectively they're guilty of price fixing. |
| £20 billion in the last eight years and some of the | | | | Your second chance rests, perhaps more precariously, |
| most severe punishments include a penalty of £39 | | | | with the politicians. There are over 1 million UK citizens |
| for a bounced cheque and a charge of £35 for | | | | claiming unfair bank charges and millions more waiting |
| going 1p overdrawn. | | | | in the wings to do the same; add to this the vast sums |
| Clydesdale, the costliest high street bank, will charge | | | | of money involved and you have don't just have a |
| you £25 a month for going overdrawn without | | | | financial issue, you have a red-hot political issue too. |
| permission plus £25 each time the unplanned | | | | With a general election guaranteed to take place |
| overdraft increases plus another £35 for every | | | | before June 3rd next year, don't be surprised if at |
| bounced payment. | | | | least one of the major political parties promises to get |
| Until Lord Phillips cast his judgement, there had been a | | | | your money back for you - whether or not you |
| strong feeling that this was a battle in which the small | | | | choose to believe them of course is another matter. |
| man held the upper hand. But despite the Supreme | | | | Charges like these have given rise to a boom in the |
| Court's ruling, there is at least a glimmer of hope for | | | | payday loans market as consumers scramble to take |
| the consumer. | | | | out short term loans and check payday loan rates to |
| If you have a claim on hold and were expecting a | | | | cover essential financial obligations - many have found |
| refund in the New Year then all might not be lost. You | | | | their debts harder and harder to manage and were |
| appear to have two chances in one day being reunited | | | | relying on a back charges refund in the New Year to |
| with the cash your bank has taken in charges. | | | | ease the pressure. |
| Your first chance lies back in the courts. When the | | | | |