An Update on the Latest OFT Test Case Developments

The outcome of the OFT test case was not expected to be handed down until the end of July 2008. However, in an unexpected announcement earlier today, a judgement has been made by the High Court ruling in favour of the Office of Fair Trading.

This decision is excellent news for bank customers and means that bank charges for going into unauthorised overdraft are subject to the ‘Unfair Terms in Consumer Contracts Regulations.’

Effectively, this judgement gives the OFT the green light to decide whether or not these charges are fair and to challenge the banks about excessively high charges. Further hearings at the High Court will consider a fair amount for bank charges. It is expected that the timetable for this will be decided at a hearing on 22nd May 2008. In the meantime cases remain on hold. This means that no further action can be taken by Its My CASH on any existing claim until the FSA lifts the hold on reclaiming.