Today a potential spanner has been thrown in the works with regard to people claiming back their bank penalty charges.
Lloyds TSB today became the first bank to win a court case after being sued by a customer for imposing allegedly unfair overdraft penalty charges. District Judge Cooke, at Birmingham County Court, dismissed a claim for £2,545 from Kevin Berwick, who argued that Lloyds TSB’s charges for having an unauthorised overdraft were illegal contractual penalties.
He said that the Lloyds TSB’s charges were in fact legitimate fees for servicing an account that was overdrawn, and as such were legal.
As this judgment has come from a district judge, it is not binding on any other court, in the way that a High Court judgment might be, which gives some comfort to those of us that are pursuing claims against our banks for penalty charges. However, as the first judgment of any kind in this sort of case, it is a bit of a blow.
2007-05-18
05:28:01
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11 answers
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asked by
stephen.oneill
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