Wednesday 11th July 2007
Financial services providers including Yorkshire Bank are facing legal action over their current account charges, it has been claimed.
Judge Iain Besford at Hull county court suggested that he feels he is the only judge to see "more of the picture" in recommending that some cases could progress through the legal system.
The banks have traditionally settled out of court without prejudice - in what is believed by many to be an attempt to avoid setting a legal precedent for future claims.
But Judge Besford proposed that a review of the situation could result in some disputes going through the courts.
"There are a number of issues coming through nationwide - what we want to do is try to narrow the issues down so that if necessary the matter can go to trial," he said.
Yorkshire Bank was also told it faces a disclosure order which may force it to reveal how it calculates charges for unauthorised current account activity such as overdrafts and bounced cheques.
Meanwhile, a Manchester branch of Abbey was recently visited by a bailiff to recover compensation owed to a customer following a similar claim of unfair bank charges.
The sum - which totals £2,769 including penalties for unreasonable treatment of customer Sam Umaar - is now to be paid directly into the claimants current account, Abbey states.
Bailiffs were told that the financial services provider had attempted to pay the full amount by cheque, but that it had been lost in the post.
However, Mr Umaar remained unimpressed by the pledge to fulfil the amount owed, saying: "Its ludicrous that the Abbey havent paid up when they know they have to."
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