Andrew George first joined the campaign against unfair banks charges in early 2005, after Ms Sauders 'historic' victory against the Yorkshire Bank plc. Of course, again, this was a case where the banks did not defend, so there was nothing remarkable other than an out of court settlement, which have been happening for years. It was a good result of course, personally and politically. Press Release 14/02/2005 “CHALLENGE UNFAIR BANK CHARGES” SAYS MP AFTER LAURA v. GOLIATH TEST CASE The Liberal Democrat MP for the West Cornwall and Isles of Scilly Constituency of St Ives, Andrew George, heralded news of the outcome of a recent County Court case on behalf of one of his constituents, Laura Saunders (of Goldsithney) which resulted in her victory against Yorkshire Bank plc in respect of bank charges amounting to £922 during 2004. Following what could be a very significant test case, Mr George believes that many banks should review their treatment of low-income bank account holders and has referred the case to the Secretary of State for the Department of Trade and Industry - Rt. Hon Patricia Hewitt MP - who has been encouraging pensioners and claimants to open up bank accounts to receive their benefit payments, rather than to receive them over the Post Office counter. The case of Laura Saunders is set out below (see notes ). Ms Saunders is one of millions of people who suffer at the hands of banks and credit card companies that make much of their profits from variable charges which vulnerable bank account members can do little about. A number of large high street banks have raised fees for bounced cheques and unauthorised overdrafts and have increased the amount charged for customers for unpaid cheques and standing orders. The consumer body Which? has called on all banks to follow the lead of Alliance and Leicester and the HSBC, which now charge the same rate for unauthorised overdrafts as they do for authorised ones (A&L charges 6.9% and HSBC 14.8%). In the case of Laura Saunders, she claimed £922 in the County Court, arguing that charges levied by the bank on her were an unlawful penalty. Commenting on the case, Mr George said, “The case of Laura Saunders is typical of many constituents who have contacted me complaining about the penalties they face, often with little prior notification of the change in the rules by which their account will be managed. Quite frankly, I believe that many lending institutions get away with blue murder in their treatment of low-income account holders. I hope that this case will be a salutary lesson to them all. “I also hope that the Government will sit up and take notice. They have been trying to bribe and cajole pensioners and benefit recipients into shifting the way they receive payments; from the Post Office counter to Automated Credit Transfer in to newly opened bank accounts. Many of those who are opening these bank accounts may find themselves in the same kind of difficulty as Laura Saunders found herself and Ministers should be aware that this could place account holders in difficulty. “As far as contract law is concerned, this test case clearly demonstrates that penalty charges should not be enforceable if those charges are disproportionate. This is good news for ordinary people on low incomes. Laura took on Goliath and won,” said Mr George.

Andrew George first joined the campaign against unfair banks charges in early 2005, after Ms Sauders 'historic' victory against the Yorkshire Bank plc. Of course, again, this was a case where the banks did not defend, so there was nothing remarkable other than an out of court settlement, which have been happening for years. It was a good result of course, personally and politically. Press Release 14/02/2005 “CHALLENGE UNFAIR BANK CHARGES” SAYS MP AFTER LAURA v. GOLIATH TEST CASE The Liberal Democrat MP for the West Cornwall and Isles of Scilly Constituency of St Ives, Andrew George, heralded news of the outcome of a recent County Court case on behalf of one of his constituents, Laura Saunders (of Goldsithney) which resulted in her victory against Yorkshire Bank plc in respect of bank charges amounting to £922 during 2004. Following what could be a very significant test case, Mr George believes that many banks should review their treatment of low-income bank account holders and has referred the case to the Secretary of State for the Department of Trade and Industry - Rt. Hon Patricia Hewitt MP - who has been encouraging pensioners and claimants to open up bank accounts to receive their benefit payments, rather than to receive them over the Post Office counter. The case of Laura Saunders is set out below (see notes ). Ms Saunders is one of millions of people who suffer at the hands of banks and credit card companies that make much of their profits from variable charges which vulnerable bank account members can do little about. A number of large high street banks have raised fees for bounced cheques and unauthorised overdrafts and have increased the amount charged for customers for unpaid cheques and standing orders. The consumer body Which? has called on all banks to follow the lead of Alliance and Leicester and the HSBC, which now charge the same rate for unauthorised overdrafts as they do for authorised ones (A&L charges 6.9% and HSBC 14.8%). In the case of Laura Saunders, she claimed £922 in the County Court, arguing that charges levied by the bank on her were an unlawful penalty. Commenting on the case, Mr George said, “The case of Laura Saunders is typical of many constituents who have contacted me complaining about the penalties they face, often with little prior notification of the change in the rules by which their account will be managed. Quite frankly, I believe that many lending institutions get away with blue murder in their treatment of low-income account holders. I hope that this case will be a salutary lesson to them all. “I also hope that the Government will sit up and take notice. They have been trying to bribe and cajole pensioners and benefit recipients into shifting the way they receive payments; from the Post Office counter to Automated Credit Transfer in to newly opened bank accounts. Many of those who are opening these bank accounts may find themselves in the same kind of difficulty as Laura Saunders found herself and Ministers should be aware that this could place account holders in difficulty. “As far as contract law is concerned, this test case clearly demonstrates that penalty charges should not be enforceable if those charges are disproportionate. This is good news for ordinary people on low incomes. Laura took on Goliath and won,” said Mr George.

Right, so you say as a question of law these charges are unlawful. I agree. The banks say, as a matter of law we are entitled to apply charges that are a genuine pre-est of our loss; and it will not be an unfair term of contract to charge for actual loss & costs etc., That is correct legally. But you say, no these are not genunine pre-est. You are making either profits or are off-setting other costs. The banks say, no, we are not. So the dispute between the parties becomes a question of fact. You need to investigate the evidence, scrutinse their accounts and so and so forth. To suggest this issue is unconnected with factual issues would suggest your 'big claim' will fall at a competency hurdle - I hope it does not, but we need to be realistic and anticipate lines of defence. That said, good luck.

Right, so you say as a question of law these charges are unlawful. I agree. The banks say, as a matter of law we are entitled to apply charges that are a genuine pre-est of our loss; and it will not be an unfair term of contract to charge for actual loss & costs etc., That is correct legally. But you say, no these are not genunine pre-est. You are making either profits or are off-setting other costs. The banks say, no, we are not. So the dispute between the parties becomes a question of fact. You need to investigate the evidence, scrutinse their accounts and so and so forth. To suggest this issue is unconnected with factual issues would suggest your 'big claim' will fall at a competency hurdle - I hope it does not, but we need to be realistic and anticipate lines of defence. That said, good luck.