13 October 2008
The high court ruling not to allow consumers to challenge bank penalty charges under common law comes as a blow for current account customers, uSwitch.com has claimed. According to the independent price comparison and switching service, £713 million bank charge claims have been frozen since the high court test case began last July. It is likely that consumers hoping to reclaim some of their money will be unable to do so for the foreseeable future, it pointed out. Simeon Linstead, head of personal finance at uSwitch.com, said the ruling comes as a "double-edged sword" for consumers in the current economic climate. "With their hard earned cash already being poured into the ailing banks, they could end up effectively paying themselves back," he remarked. The high court ruling applies to fees levied by Barclays, Clydesdale and HSBC between 2001 and 2007, which according to Mr Linstead offers a "glimmer of hope" for consumers with current accounts. His comments come after it was announced that the government is to take majority shareholdings in Royal Bank of Scotland and Halifax Bank of Scotland.
© 2008 Adfero Ltd
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