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Supreme surprise

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So the new Supreme Court flexes its muscles, and the banks win on charges. Interesting; some consumers are laughing - it is estimated that hundreds of millions of bank charges were refunded before the test case.  Others, who got in later, will rue their timing. There may be a group who didn't incur bank charges, who breathe a sigh of relief: The banks would have found another way to recoup their losses, possibly by monthly charges on accounts.

 

However, this may still be a possibility - the OFT are considering whether to continue to investigate bank charges. The Treasury are pushing for a voluntary agreement on future bank charges, but don't rule out the possibility of further rules being forced upon the banks. Who can blame them, when the cost of a default may be as little as £2.50 to a bank, yet they charge a customer £25 or more.

 

One would think that seeing as taxpayers own huge slices of the banks, we could insist on charges that are proportionate and transparent. However, seeing as today's Walker report may require banks to disclose the number of bank employees earning more than £1m, we may soon find out where some of the money goes.

  

By Andrew Leakey

Consumer Solicitor

 

 

 

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