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whats the legal position on unauthorised overdraft charges?

April 26, 2017Charges Legal overdraft position unauthorised

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whats the legal position on unauthorised overdraft charges?

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The Office of Fair Trading (OFT), seven UK banks (Abbey, Barclays, Clydesdale, HBOS, HSBC, Lloyds TSB and RBS) and Nationwide Building Society have brought a “test case” to the High Court – to get answers to important legal questions about bank charges for unauthorised overdrafts. This legal “test case” began in January 2008 and the judge made a preliminary decision in April 2008. This decision answered some of the legal questions about bank charges – but not all of them. This is a complex legal process. The banks said they wanted to appeal some aspects of the decision. And other important legal questions need to be dealt with in further court hearings. This means the “test case” may take some time, before the issues are resolved. The OFT has a questions-and-answers section on its website about the legal “test case”. And the FSA also publishes information about progress on this legal action.