RBS makes plans to reimburse overdraft charges
by Gill Montia
Story link: RBS makes plans to reimburse overdraft charges
Royal Bank of Scotland (RBS) and its subsidiary NatWest could become proactive in refunding the unauthorised overdraft charges that are currently the subject of a High Court test case.
According to an internal document leaked to the BBC, the group is drawing up plans for mass repayments, should the seven High Street banks involved in the case be ordered to refund the charges, which run into millions of pounds.
The case has been brought by the Office of Fair Trading (OFT) and is currently bogged down in an appeal against an initial ruling that the OFT can assess the terms and conditions that allowed the banks to charge the fees under the 1999 Unfair Terms in Consumer Contracts Regulations.
However, the outcome of the case should be known in the New Year and it would seem that RBS is preparing for a triumph by the OFT.
RBS passed to majority state-ownership last week, when the Government was forced to pick up a 57.9% stake in the group, having underwritten a share issue.
Earlier this week, the bank announced that it would allow homeowners in financial difficulties six months in which to sort out mortgage arrears, before commencing repossession proceedings.
The move put pressure on the lender’s competitors but some mortgage experts described it as a PR stunt, as RBS’s statement merely formalised existing practices.
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