The Office of Fair Trading (OFT) has lost its court battle against banks charging excessive fees for unauthorised withdrawals on overdrafts.
Thousands of current account holders had filed complaints with their banks asking to refund the charges, leading to the case being taken to the supreme court.
However, it was announced yesterday (November 25th) that the banks would not have to pay back an average £1,700 per claim to those suffering financial hardships and are now allowed to judge each case individually themselves.
Martin Lewis of MoneySavingExpert.com said: "The initial shock reaction by the crowd in the court . obscured what was perhaps the most important part of the judge's final statement, that 'the OFT may be able to look at fairness by another route'."
Santander launched a savings account recently, offering no charges for bounced cheques or going overdrawn, which was commended by the financial advice website moneysupermarket.com.
Banks win supreme court case on overdrafts
Financial Services > e-banking > Banking news
Banks win supreme court case on overdrafts
Thu, 26 Nov 2009
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