Citizens Advice: Bank charges test case

Response to announcement from OFT and BBA on bank charges Friday 27 July 2007, Citizens Advice Director of Policy, Teresa Perchard, said: “Consumers desperately need clarity on whether the banks are acting legally in imposing these charges, and if they are, what is a fair level for the charges to be set at, so this action is welcome. However, it could take years before a final judgment is made.

“In the meantime, people who may eventually find themselves entitled to a lot of money back from their bank – many of them on low incomes –could remain unfairly out of pocket and in some cases in debt. This makes it all the more important that banks stick to their own code of practice by ensuring they don’t impose unreasonable charges, especially on people already in debt, or on benefits and using basic bank accounts.

“We see no reason for banks to hold back from reducing their charges, or introducing ? 10 ‘buffer zones’ to basic bank accounts so that low-income customers are at less risk of incurring these charges.

“We would urge anyone who feels their bank has imposed unfair charges still to lodge a complaint, so that this is in the system to be settled when the outcome of today’s action is announced. Banks will be expected to keep records of all the complaints made and to identify cases where the customer is in hardship.”