Bank charges - what now?
Today, the UK's banks have won a significant victory against attempts to have their overdraft fees ruled unfair.
The Supreme Court has decided that the Office of Fair Trading (OFT) does not have the powers it thought it had to scrutinise the fairness of bank charges.
"The result is that banks can continue charging high fees for customers who go overdrawn without authority to subsidise the cost of providing current accounts to other customers who stay in the black." said BBC personal finance reporter Ian Pollock.
Ian told BBC News: "What is not clear yet is what happens to the refund claims that have been on hold since July 2007,"
"They may stay that way if the OFT attacks bank charges another way, perhaps by triggering a full Competition Commission inquiry. Alternatively, the judicial authorities may simply invite local judges to dismiss the claims that have stacked up before them."
Those who received payments from banks before the test case started will keep their money, because these pay-outs were made as "goodwill gestures".
Hard up? How to claim back bank charges
People in financial hardship can still continue to request a refund of their bank charges.
Hardship is defined as being unable to meet priority financial commitments; these are things like utility bills, rent, council tax, and food. When contacting your bank, you should also highlight any change in lifestyle such as relationship breakdown, death of a partner or starting a lower paid job.
As was the case before today's Supreme Court ruling, there is no guarantee they will receive their charges back but the bank is still required to treat cases of financial hardship in a sympathetic and positive manner.
People in financial hardship should write a letter of complaint to their bank as they would have done before today's ruling.
Template letter
Here is The One Show's template letter to help you with your claim:
Your bank has eight weeks to resolve your complaint. If you're unhappy with their response, contact the Financial Ombudsman Service who will look at your claim and decide whether the bank should award you some or all of your charges.
More information
- Banks win Supreme Court case on overdraft charges
- Q&A: Overdraft charges and your claims
- 'No free lunch' on bank charges
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