Bank charges ruling 'surprising'

The ruling made yesterday (November 25th) by the Supreme Court concerning bank fees has been described by one industry practitioner as surprising.

It found in favour of the banks and overturned previous decisions by the High Court and Court of Appeal that unarranged overdraft charges can be assessed in full for fairness by the Office of Fair Trading (OFT).

Responding to the development, Martin Bamford, chartered financial planner for Informed Choice, said: "Before the ruling, the general view was that the verdict would be in the favour of the OFT."

He went on to suggest that a ruling against the banks could have had significant consequences in terms of their financial strength, as well as their profitability and the relationships people have with financial service providers.

It is difficult to predict how the OFT may react to the judgement, although it is probable that it will continue to pursue its cause, Mr Bamford concluded.
ADNFCR-2353-ID-19481885-ADNFCR

26/11/2009 16:32

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