Tuesday 19th June 2007
Banks have been criticised for employing delaying tactics when accused of unfair charges for unauthorised current account overdrafts.
Judge David Mackie QC of London Mercantile Court berated high street banks, with Lloyds TSB singled out as one of the worst offenders.
In many cases, Lloyds TSB requested details of fees when going to court which the claimant explained had been supplied months earlier.
Meanwhile, the financial services provider settled out of court with one customer the night before a scheduled court appearance.
However, the consumer was not told of the settlement and appeared in court anyway, prompting Judge Mackie to award an additional £100 in compensatory expenses.
While some claimants have been awarded compensation and others have settled out of court, no case has yet set a legal precedent.
But the banks have typically been willing to refund current account fees in order to avoid setting a precedent which could lead to a flood of claims being made.
More than 30 cases were dealt with by Judge Mackie, with the majority settled in favour of the claimant.
A number were adjourned to July as it emerged that county courts had failed to forward on documents which comprised the evidence required to assess the fairness of charges imposed on particular individuals current accounts.
Judge Mackie suggested that this should be taken as an indicator that regional courts are becoming overwhelmed with the number of claims being received for unfair charges.
Barrister Tom Brennan states that he is still awaiting a ruling as to whether his case against NatWest may proceed to trial as he seeks to set a legal precedent which may assist others in recouping money from banks.
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