uSwitch comments on Lloyds TSB’s court case victory

In response to the announcement yesterday that Lloyds TSB has won its first court case after being sued by a customer for imposing supposedly unfair overdraft penalty charges, Mike Naylor, Personal Finance Expert at independent price comparison and switching website uSwitch.com, comments:

“On the surface this news may feel like a big blow to the many consumers who are trying to reclaim their bank charges. It is disappointing that the District Judge Cook looked upon Mr Berwick’s bank charges as legitimate fees for servicing his account, especially when evidence has suggested that the £30 that Lloyds typically charges is nowhere near the real cost incurred to the bank. It is worth noting that today’s ruling has come from a district court, and we assume it will not be binding on any other court in the UK.

“As a result, this ruling will not affect other cases that are currently being heard and banking customers still have every chance to continue fighting to reclaim their excessive bank charges. We urge people to continue doing this - either by pursing their banks directly, via the ombudsman or the courts. Our recent research highlights that £2.12 billion is sat waiting to be claimed by consumers so they really need to act now while they still have the option.

“We hope that this news does not further confuse and baffle consumers any further with regards to what is, and what is not, a fair charge on their accounts. In the interim, while we wait for the OFT to report back on its findings and recommendations in this area, we would like to see consumers offered more guidance about the options that are available to them.”