High Court ruling on unarranged overdraft charges
The UK's High Court has today confirmed that personal current account unarranged overdraft charges can be assessed for fairness by the OFT. However, the judgment also found in favour of the banks that their relevant terms and conditions were in, or largely in, plain intelligible language; and that the banks' unarranged overdraft charges were not penalties at common law. The judgement, which may be appealed, did not conclude that current charges are unfair. This continues to be investigated by the OFT.
This case was brought by the OFT in agreement with eight of the largest current account providers. Frontier (Europe) advises two of the banks.
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