BREAKING NEWS: Banks win Supreme Court appeal over charges!
Breaking news from the Supreme Court of all things that are good, right and justiceful is that the banks have WON their appeal in the test case relating to unauthorised overdraft charges.
Diana Ross Lord Phillips is the Supreme Court judge who has handed down the ruling that could shut the door on a flood of refunds to millions of customers of bibblions of pounds. Yes, bibblions.
The ruling means that the Office Of Fair Trading will now not be granted immediate power to scrutinise the fairness of overdraft fees. Had the banks lost, the OFT’s subsequent report would almost certainly have lead to a deluge of refunds. But in his ruling, Lord Phillips said that bank customers agreed to pay overdraft charges as part of the price of having a current account, so they fell outside the scope of the appropriate regulations.
But all is not necessarily lost for campaigners - Lord Phillips said that the OFT could still try to scrutinise bank charges under other regulations. The OFT have previously said that, in the event of a defeat, they would seek to instigate a full competition commission enquiry in a bid to lower overdraft fees.
Which? chief executive, Peter Vicary-Smith, said:
“This is a bitter blow for the millions of people who have been patiently waiting to get their bank charges back. Not only does it give banks licence to charge what they like for unauthorised overdrafts, but it could have ramifications for other areas of personal finance. The banks now have no excuse for introducing other fee charges.
“The banks have done everything possible to frustrate the OFT throughout this process. The OFT and the Government should now explore other avenues it can pursue to get a fair deal for consumers.”