Claim Bank Charges Back - Helping you to reclaim Unfair Bank Charges!

The Office of Fair Trading (OFT) has accused banks of writing its contracts in a "different language" that consumers do not understand, while giving evidence in the ongoing bank charges case.

Brian Doctor, QC, representing the OFT, told the High Court that it was "entering a strange world where the banks speak a different language," adopted to avoid regulations.

The case, moved to the International Dispute Resolution Centre on London's Fleet Street to accommodate the scores of lawyers, press and public, could decide the future of retail banking charges.

The OFT is investigating complaints from consumers that bank charges on overdrafts are too high. Seven banks; Abbey, Barclays, Clydesdale, HSBC, HBOS, Lloyds TSB, Royal Bank of Scotland and the Nationwide building society, are defending the industry.

The banks have argued that they merely charge customers for services provided as part of opearting a bank account.

Mr Doctor, however, argued that the charges were not in exchange for services and that the banks automatically assumed that consumers wanted to go ahead with a transaction even if they did not have the required funds in their account.

The OFT argued that if a consumer didn't have enough money in their account then the transaction should not go through, rather than allow it to and penalise the consumer.

He said that consumers entered a relationship, or agreed contract, when opening a bank account and that it was not fair to presume they would want the bank to act in such a way without consulting them first.

"If you are one pence short then the payment doesn't have to be made," Mr Doctor told the court.

He added that if a customer had been asked in advance what they wanted the bank to do in such a situation, it would be fair, and called for a change in language in that respect.

Banks have already paid out million in refunds to consumers angered by the charges and Mr Doctor said they were now seeking a "knock out blow" to assist them in ongoing litigation with customers.

The case is expected to continue for at least another week.

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