Banks repay £750 million in unfair charges
by Gill Montia
Story link: Banks repay £750 million in unfair charges
Having studied the 2007 annual accounts of leading UK’s banks, the BBC estimates that during the year, over £750 million was repaid to customers who demanded the return of charges made for breaching their overdraft limits.
Five leading High Street banks alone have paid back a combined £549 million, broken down as follows: Lloyds TSB £76 million; Barclays £116 million; HBOS £122 million; RBS Natwest £119 million; HSBC £116 million.
However, worse may follow because it is estimated that UK banks could be liable to pay a further £1.37 billion for 2007, if the Office of Fair Trading is successful in a High Court test case brought to establish the legality of the charges.
Many claims by customers have been put on hold, awaiting a judgement in the court case, and the BBC calculates that a further £1.37 billion could have been paid out by the banks last year if the court had not granted a stay on new cases and some already in hand.
The stay does not prevent consumers registering new claims or banks making goodwill payments where there are special circumstances.
Add to Bookmarks:
Related stories to: Banks repay £750 million in unfair charges»
No comments yet.Leave a comment
Previous: « US Barclays in money laundering probe
Next: Australian interest rates continue to rise »
Visited 276 times, 2 so far today