Bank threatened with winding-up order

21 September 2007

One of the UK's biggest high street banking groups has been threatened with a winding-up order after being accused of ignoring customers' claims to repay overdraft charges in the bank fees debate.

Claims management company Robertson Holbrook has threatened to take action against HBOS after it allegedly ignored judgements about repayment of overdraft charges from Cardiff County Council.

According to the BBC, the UK's fourth largest banking group owes ten customers £45,643 after HBOS failed to appear to defend their claims in court.

The winding-up proceedings come after ten claims against the bank were heard in early August and led to judgements against the bank when it did not turn up in Cardiff County Court to defend them.

"We have received the letter and our legal team are currently reviewing it," a bank spokesperson told the BBC.

"We have not ignored the claims and we will be telling Robertson Holbrook that very shortly."

Under the Insolvency Act, winding-up will start if the HBOS does not respond to Cardiff court judgements within 21 days.

A High Court test case against some of Britain's high street banks by the Office of Fair Trading (OFT) is scheduled to take place on January 14th 2008.

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