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smiffy1967

Bank Charges

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Does anyone know whats happening with the bank charges case?

seems to have dragged on for years with little or no news, i also here Banks have ring fenced quite a few billion expecting to pay out.

If anyone has any info

Please

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Does anyone know whats happening with the bank charges case?

seems to have dragged on for years with little or no news, i also here Banks have ring fenced quite a few billion expecting to pay out.

If anyone has any info

Please

The FSA have granted the banks another 6 months while the test case concludes. The banks are taking this all the way I'm afraid. IMO the FSA know that if they didn't extend the waiver then some banks would be fcuked!

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Does anyone know whats happening with the bank charges case?

seems to have dragged on for years with little or no news, i also here Banks have ring fenced quite a few billion expecting to pay out.

If anyone has any info

Please

The High Court case resulted in the conclusion that the charges weren't contractual penalties and therefore weren't void at law for being so. What that meant is that they are charges for a service, meaning that the FSA (or whoever it was that brought the case) can assess them under the terms of the Unfair Terms in Consumer Contracts Regulations, the part which relates to terms which have not been individually negotiated. Basically, such fees need to be able to be demonstrated to be reasonable in terms of the service which is being provided.

I think there is an appeal pending on certain points of the case though. I forget the precise details.

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The High Court case resulted in the conclusion that the charges weren't contractual penalties and therefore weren't void at law for being so. What that meant is that they are charges for a service, meaning that the FSA (or whoever it was that brought the case) can assess them under the terms of the Unfair Terms in Consumer Contracts Regulations, the part which relates to terms which have not been individually negotiated. Basically, such fees need to be able to be demonstrated to be reasonable in terms of the service which is being provided.

I think there is an appeal pending on certain points of the case though. I forget the precise details.

so they are going to have to pay back some of the charges then?

I hear RBS had a a couple of billion ring fenced, knowing they will have to pay out!

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so they are going to have to pay back some of the charges then?

I hear RBS had a a couple of billion ring fenced, knowing they will have to pay out!

The banks have known for a while they will eventually have to pay it out, but why not drag it on as long as possible? The lawyers fees must be peanuts compared to what they owe the public. Smart strategy.

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