The Guardian - NatWest back in court over penalty charges

A bank customer's legal battle to obtain damages over "unfair" penalty charges resumed today.
Recently qualified barrister, Tom Brennan, is taking NatWest to court in relation to £2,500 that was taken from his account in unauthorised credit and bounced payment fees.

Alongside full reimbursement, Mr Brennan is also seeking exemplary damages, which are awarded against a defendant when a wrong is deemed to be deliberate, malicious or negligent.

A court hearing earlier this month had to be postponed after the sitting judged deemed that not enough time had been set aside to hear the case.

Speaking at the City of London county court, Judge Simpson told Mr Brennan, NatWest's legal representatives and a courtroom packed with journalists that he expected the case would be "closely argued" on both sides.
NatWest, which has already offered Mr Brennan £4,000 to settle out of court according to reports, is attempting to get the court application for exemplary damages thrown out.

If it fails, the bank could be forced to justify fees that can be as high as £38 for going just a few pounds over an overdraft limit.

Banks and building societies are already under pressure over the issue following an announcement last week by the Office of Fair Trading that detailed a far-reaching probe into the pricing of current accounts and penalty fees.

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