BBC - Bank charge case ends for verdict

A legal attempt to force NatWest Bank to justify its overdraft charges has ended after three days in order for the judge to consider a verdict.

Newly-qualified barrister Tom Brennan has asked the court for permission to sue NatWest for damages, over what he claims are unfair bank charges.

Victory for Mr Brennan could open the way for other customers to claim extra damages in relation to bank charges.

NatWest's lawyers branded Mr Brennan's arguments as "madness and ridiculous".

The hearing took place at the City of London County Court, and the judge is due to give his decision in due course.

Damages claim

Mr Brennan accuses the bank of deliberately harming him by unlawful means, because the overdraft charges on his current account drove him into the red, thus damaging his credit rating.

Brennan is claiming a total of £3,393, including court fees and interest.

The NatWest has already refunded £2,548 and offered to pay him a further £1,600.

On Monday, arguing his own case before Judge Peter Simpson, Mr Brennan claimed these payments amounted to an abuse of power by the bank.

He said the bank had simply forced the money into his account before closing it, and argued that this should be seen as an attempt to circumvent consumer law.

"What the defendants have sought to do is buy their way out of this claim," Mr Brennan told the court.

He said that if this tactic by the bank was allowed then there was "no way to prevent the continued use of unfair terms" in its contacts with customers.

In response, Ben Pilling, acting for NatWest, replied that the "claim for causing loss by unlawful means was unsustainable" and that citing European legislation was of "no relevance".

Damaged hopes

If NatWest succeeds in seeing off Mr Brennan's claim, it would damage the hopes of thousands of bank customers currently suing their banks over charges.

Last week, Lloyds TSB became the first bank to defeat a court challenge by a customer for recovery of charges.

District Judge Cooke, at Birmingham County Court, dismissed a claim for £2,545 from Kevin Berwick.

Judge Cooke decided the bank's charges were not illegal contractual penalties but legitimate fees for servicing an overdrawn account.

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