BATTLE FOR REFUNDS CONTINUES
A new challenge on high overdraft penalties could be mounted
By Chris Torney
CAMPAIGNERS are refusing to admit defeat in their battle to have bank charges refunded.
Last week’s supreme Court decision to block the Office of Fair Trading’s attempts to curb overdraft charges appeared to slam the door on millions of refund claims.
When the court case started in 2007, financial regulators put a block on all the claims already lodged with banks, courts and the Financial Ombudsman service.
Prior to that, banks had voluntarily paid out millions of pounds in overdraft-fee refunds. This block has now been lifted. But Martin Lewis from website moneysavingexpert.com said that the decision did not necessarily mean that all ongoing claims would not now succeed.
“We lost the case on a technicality, so now we are looking to win on a technicality,” said Lewis.
His firm is consulting legal experts to see whether there might be grounds to challenge the high level of penalties imposed when current account holders go overdrawn.
Lewis added: “i think there is still a 10 to 20 per cent chance of people getting their money back.”
Lewis said his priority was to give advice to those with cases in the small-claims courts, following reports that banks were now applying to have them struck out.
Campaigner Which? warned against paying claims-handling firms to try to take cases further.
Chief executive peter Vicary-Smith said: “Beware of companies who contact you promising to get your bank charges back, and you must never pay an upfront fee.”
