The Guardian - Bank charges case delayed

Consumers waiting for the test case over the legality of bank overdraft charges to start will have to wait a little longer, after it emerged the hearing would not be able to start tomorrow as planned.

The case has been postponed because the judge hearing it has been detained on another case.

The Office of Fair Trading (OFT), which is taking the case against seven banks and one building society, said it hoped proceedings would begin before the end of the week.

The case is designed to determine the legality of charges imposed by current account providers when a customer exceeds his or her agreed overdraft limit or pays a cheque or direct debit that the bank later bounces.

The OFT believes the law on contracts means banks cannot charge fees in excess of the cost of dealing with an unauthorised overdraft, a position the banks dispute.

When it finally begins, the case is expected to last eight to 10 days with the judge expected to make a ruling by Easter.

Campaigners, who have lobbied banks to reduce penalty charges, had been expected to appear outside the International Dispute Resolution Centre in London tomorrow, where the hearing is being held.

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