14 January 2008
A high-profile case, which could see big changes to current accounts in the UK in future, gets under way at London's High Court today.
The case, brought by the Office of Fair Trading (OFT) against seven high street banks and one building society, centres on whether or not the high penalty fees currently imposed on those who exceed their overdraft limits are unfair.
Thousands of customers had already claimed the penalties back from banks - although they continued to be imposed on others - by the time the OFT launched legal action in July.
A preliminary hearing takes place in court today - the precursor to what is anticipated to be a long-running case.
Should the OFT win, the £30 charges currently issued by banks for exceeding overdrafts could be cut dramatically.
Commenting on the case, a spokesperson for industry body the British Bankers Association (BBA) said: "Banks do not accept that the fees are penalties - the banks believe that unauthorised overdraft fees are fair fees for providing their customers with a service."
Prior to all penalty refunds being halted when the case was announced, it is estimated that several hundred thousand Britons had successfully claimed the fees back from their banks.
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