Monday 30th July 2007
A high-profile legal test case could see complaints about current account charges put on hold, it is claimed.
The news comes as the Office of Fair Trading (OFT) has launched a case in the High Court to establish a legal basis for any future complaints which may be brought to trial.
And the Financial Services Authority (FSA) - the body responsible for regulating banks and other current account providers - lent its support to the case.
Managing director of retail markets Clive Briault said: "It is not in the interests of all consumers for complaints to continue to be dealt with in the current inconsistent way.
"Once there is certainty on these charges, complaints can be dealt with fairly and consistently."
The FSA has granted permission for complaints to be put on hold until the outcome of the OFT case is known.
Conditions have been placed on this waiver to ensure consumers remain protected and regularly informed of developments by their financial services provider.
In light of the case, many financial services providers have stopped processing complaints, according to the Financial Ombudsman Service (FOS).
The service has also stopped handling complaints until the legal environment for such claims is established, it states.
However, consumers whose complaint also includes other aspects of unfair treatment are told those parts of the objection should still be dealt with.
"You would be able to accept a settlement for the other parts of the complaint, without affecting your right to have your complaint about bank charges looked at again," the FOS advises.
But those who have already accepted an out-of-court settlement will probably be unable to claim again, should the test case result in favour of the consumer, the ombudsman adds.
"If youve already accepted an offer from your bank, this means your complaint will almost certainly be settled for good," the FOS explains.
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