Overdraft Fee Refunds in 2007

The court case last month that was to decide if banks and building societies should be punished for placing extortionate fees on overdraft charges, is still being mulled over by the judge, Mr Justice Andrew Smith.

Many feel that these bank charges are over inflated and need to be regulated by legislation. Because of the number of customer complaints, the Office of Fair Trading and the Financial Services Authority decided a court case would be the best course of action.

In 2007 several banks in the UK repaid up to £750,000 in refunds to previously unhappy customers who had decided to sue and claim back money for such unfair charges. The bank HBOS was revealed to have paid out the most at £122 million.

One member of the Consumers Action Group who campaigns against these charges, pointed out that the banks seemed quite happy with the court case going ahead, as the number of claims was building up out of control. At least this way banks will finally get to know one way or another what their course of action must be.

It was also revealed that due to the court case there was a stay put in place, which meant nothing more could be repaid until a final decision had been made. Lets only hope they don't take too long to decide on the outcome, as many disgruntled customers who have lodged complaints will be wanting refunds if they are entitled to it.

If you have had bank charges which you deem to be unfair, you can still log a complaint with the Financial Ombudsman Service (FOS). The British Bankers Association (BBA) say that many banks will be sympathetic and offer goodwill gestures to customers who have had a significant financial burden.