OFT vows to pursue bank charges - BBC

The Office of Fair Trading (OFT) will still pursue bank overdraft charges as unfair, even if it loses the current legal appeal in the House of Lords.

The threat was made by Jonathan Crow QC, for the OFT, on the final day of an appeal before five Law Lords.

Seven banks and one building society are trying to overturn two previous rulings that would let the OFT investigate their overdraft fees.

Jonathan Sumption QC, for the banks, ridiculed the OFT's concerns.

He said they were part of a " developing saga" which he suggested had no basis in law.

Mr Crow ended his submission to the Lords by pointing out that the OFT was not just concerned about the high cost of bank charges. The OFT was, he said, also worried about the way bank accounts and their charges operated in practice.

"This relates to the interplay between the amount and the fact the customer does not truly consent to the charges," he said.

He argued that bank customers were at a disadvantage at two stages: when they first opened an account and when they triggered the overdraft fees.

He listed some of the problems that bank customers faced.

He argued that they typically did not study the terms and conditions of their accounts: had no opportunity to opt out of their contract with their bank: could not work out in advance when the fees might be imposed: would find they were triggered without an explicit request to the bank for an overdraft: and often happened by mistake.

"The OFT is concerned that banks are capitalising on a mistake," he said.

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