OFT decision - official announcement

[gt94sss2]

Following the Supreme Court's judgment last month, the OFT has today announced its next steps in securing changes to unarranged overdraft charges and the wider personal current account market.

 

 

The Supreme Court found that unarranged overdraft charging terms in the contracts considered are not assessable in full under the Unfair Terms in Consumer Contract Regulations 1999 ('UTCCRs').

 

 

After detailed consideration of the judgment and of the various options available to it, the OFT has concluded that any investigation it were to continue into the fairness of current unarranged overdraft charging terms under the UTCCRs would have a very limited scope and low prospects of success. Given this, it has decided against taking forward such an investigation.

 

 

The OFT nevertheless continues to have significant concerns about the operation of the market for personal current accounts. Despite some recent and planned improvements by banks, particularly around transparency and customer switching, it believes fundamental changes are still required for the market to work in the best interests of bank customers. Banks earn around a third of their personal current account revenues from unarranged overdraft charges that are difficult to understand, not transparent and not subject to effective consumer control.

 

 

A number of options are available to secure the changes that the OFT wants to see, ranging from voluntary action to legislative change. The OFT will now discuss these issues intensively with banks, consumer groups and other organisations, with the aim of reporting on progress by the end of March 2010.

More here

 

Regards

Sunil

[rebel11]

Basically it's upto Joe Public to go after the Banks.

[mailmannz]

The OFT has shown itself to be the bunch of clowns a lot of people thought they were after the first day of the very first test case.

 

Sadly this means you will continue to be royally shafted by the banks as they have no reason to negotiate with OFT on making any changes...simply because OFT will be coming from a position of weakness.

 

Sad day for all indeed.

 

Mailman

[tiredandangry]

Yes its a let down. That does not mean I'm going to stop fighting. Like many of us that are disabled and on benefits, I am entitled to legal aid, so it is not going to cost me to fight.

 

Is it possible to find out how many caggers are on benefits and how much in charges has been taken?

 

How many are disabled? We have the services part of the disabled discrimination act that may apply re behaviour of banks.

 

How many were persuaded to take out loans to cover charges while still on benefits?

 

This is the sort of information that could be incredibly shaming to the banks and government.

[the_freedom_trail]

Yes its a let down. That does not mean I'm going to stop fighting. Like many of us that are disabled and on benefits, I am entitled to legal aid, so it is not going to cost me to fight.

 

Is it possible to find out how many caggers are on benefits and how much in charges has been taken?

 

How many are disabled? We have the services part of the disabled discrimination act that may apply re behaviour of banks.

 

How many were persuaded to take out loans to cover charges while still on benefits?

 

This is the sort of information that could be incredibly shaming to the banks and government.

 

Isn't it unlawful for banks to take benefits money for charges, or much like everything else do not they give a *^%$?

 

I admire your positive attitude. There is every reason to fight. I must admit, I hardly fell over with suprise to hear the OFT's decision but in a way this is a major positive. It means that other legal arguments can be made and will ultimately come down to the decision of the CC Judge. Also, its all smoke and mirrors - I am sinical as to how the OFT with its massive resources and excellent legal professionals managed to essentially screw up their legal argument. When it comes down to it, the OFT is ultimately a governmental body, and it is also in the best interest of the government to protect the banks.

 

I will carry on fighting, and I am glad to hear that you are.

 

TFT

[tiredandangry]

TFT

 

Thanks. That cheered me up.

 

Considering so many vulnerable people are involved it would have been a kindness if these big institutions had left their announcements till after Xmas.

[lookinforinfo]

Tired and Angry you might not need to take your bank to Court. The FOS have written to all the financial institutions advising them to take a sympathetic

stance with some of their customers including refunds.

Here is the letter http://www.financial-ombudsman.org.uk/faq/pdf/hardship-letter-A.pdf

[Bigdebtor]

I'll believe this produces real results when I see it!

 

HBOS has just convinced FOS it had treated my hardshipo case fairly by waiving FUTURE charges for 3 months - and then it brought in its new T&C's - where NO ONE gets charges - They "just" pay £5 per day when they go over their limit.

[tiredandangry]

Hi all hope your having a good Xmas.

 

Can I get the FOS to look at the harrassment before the stay and after? They sent my case to the debt collectors knowing it was stayed.