The Sun - Bank charge case is delayed again

BRITAIN’S banks can appeal against a court ruling on overdraft charges which could cost them billions.

The decision means any claims against such charges will probably not be settled until next year.

The High Court ruled five weeks ago that the Office of Fair Trading may investigate charges on unagreed overdrafts.

If the OFT decides such charges are unfair, banks could be forced to repay millions to customers charged for bounced cheques or for going into the red without permission.

But Mr Justice Andrew Smith said yesterday he “was minded” to let the banks appeal against that decision. The banks — ABBEY, BARCLAYS, CLYDESDALE, HBOS, HSBC, LLOYDSTSB, RBS and building society NATIONWIDE — are now likely to do just that.

They say the OFT should not be allowed to examine the charges as they are not subject to consumer contract regulations.

The banks also argue that, in any case, the charges are not unfair because they represent legitimate fees.

An appeal is now likely to be heard in the autumn, by which time the OFT should have made a decision on whether the charges are fair or not.

In reaching his decision, Mr Justice Smith said he wanted the OFT to decide by then whether the charges were unfair.

He said the delays were not fair to the tens of thousands of bank customers whose claims are currently suspended by the courts.

He told a case management conference: “How long should we hold up the county court litigation?

“Are we talking months, years or weeks?

“We are facing a lot of litigants who have not had their claims struck out and who should be in a position to pursue their claims.”

The British Bankers Association said: “Once the precise terms of this permission are agreed, the banks will progress the appeal with expedition.”

But David Kuo, of personal finance website Fool.co.uk, said last night: “Banks know that time is money, which is why they are appealing — they want to hang on to your money for as long as possible.”

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