Bank: 1 - Consumer: 0
May 16, 2007Thanks for visiting! If you like what you're reading, you may want to subscribe to my RSS feed.
While we are all eagerly waiting for some progress in the Brennan vs NatWest case, a first court order filed in Birmingham established the lawfulness of overdraft fees.
The claimant was suing his bank Lloyds TSB over £2,545 of unauthorised overdraft fees, which he claimed were illegal contractual penalties. The judge concluded:
“Having held that the charges complained of are not charges for breach of contract but part of the price of the services provided by the bank…he has not satisfied me that he has any ground in law for recovering from the bank the amount of any charges which he has paid to it.”
Even though this ruling comes from a District Court and is thus not binding on any other court, it might adversely affect the number of bank charges claims that are successfully settled before the first hearing.
Read the BBC story here.
