Bank charges to be tested further
A number of UK lenders, including HSBC, Lloyds TSB, Royal Bank of Scotland and Nationwide, have agreed to go to court in a test case about overdraft charges.
On Friday, and with the banks' backing, the Office of Fair Trading (OFT) will file an action arguing that charges are unfair. Market watchdog the Financial Services Authority (FSA) will allow banks to suspend dealing with any claims for repayment of overdraft charges filed against them until the test case has been decided.
This is the next stage in a long-running dispute about the legality of banking charges, and takes place at the same time as the OFT is undertaking a market study into the provision of Personal Current Accounts.
Frontier (London) advises HSBC on contractual, regulatory and strategic issues.
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