Proposed Group Litigation Orders (Interested Parties)

[Tom Brennan]

Proposed Group Litigation Orders (GLOs)

Important: If you are interested in becoming involved in a Group Litigation Order, please reply to this post stating:
·which bank (or banks) you have a claim against
·whether you are eligible for legal aid (see below)
Please do not post any additional information at this stage, as you may be contacted later by private message for any additional information. Please note there is a separate post for general discussion of the proposed GLOs: Discussion on Proposed Group Litigation Orders


The issue of bank charges, their lawfulness and their continued use has been completely overtaken by the OFT test case proceedings. Attempts by individual consumers to find redress, either through the banks’ own complaints procedures, or through the courts, have now ground to a halt whilst the test case continues and whilst the FSA waiver remains in place.

Although the OFT and the FSA are undertaking serious and much needed work through the test-case and the PCA market study, there are legitimate concerns within consumer circles that the interests of the consumer are not being adequately represented or protected.

The judgment of Smith J. makes it clear that bank charges are subject to the requirement of fairness, and the OFT has now written to the banks with their preliminary conclusion that these charges are unfair. Nevertheless the banks are still imposing these charges with impunity and routinely ignoring consumer complaints, citing the FSA waiver and the test case as justification. Without any proper redress through the court system, consumers are becoming increasingly frustrated by this apparent unequal treatment, particularly those consumers suffering from financial hardship.

Given the current financial crises affecting the UK banking industry, it is unsurprising that the banks are not seeking a quick resolution to the issue of bank charges. There are already in excess of 65,000 “bank charge” claims in the court system, and OFT figures suggest that in excess of 12 million people could have a claim against their bank; the final compensation figure could be well in excess of £10billion.

Even when the test case is fully resolved some time in late 2009 or early 2010, there will remain a number of outstanding legal issues, since neither the OFT nor the FSA have any statutory powers to bring proceedings on behalf of consumers. These issues include, but are not limited to:

• What can be recovered by consumers? The full charges, the interest on those charges? What about any consequential losses, such as a resulting bankruptcy or the repossession of a family home?
• What rate of interest can consumers reclaim: the statutory 8%, compound interest or the contractual interest that the banks have imposed?
• Does the Statute of Limitations and the 6-year rule apply to bank-charge claims?

And whilst the test case continues, there are pressing concerns for many claimants:

• Can consumers facing financial difficulty bring an injunction to stop these charges? Can all consumers?
• Can the stays on cases involving financial hardship be challenged?
• Can the ongoing FSA waiver be challenged in light of recent developments?

With legitimate concerns that the consumer’s interests are not being properly advanced or protected, it is essential for consumers to be properly represented. Whilst no individual could be expected to have the resources to fund their own legal team, collectively consumers could have a much greater say in how their interests are protected through the use of Group Litigation Orders.

A Group Litigation Order (‘GLO’) is an order made by a Court to manage claims which give rise to common or related issues of fact or law (the ‘GLO issues’). Essentially, one claim is used as a test case to deal with the GLO issues, and all claims which are proceeding on related issues of fact or law are attached to that claim by way of a Group Register. Any ruling that is made in respect of the test case will be binding on all other cases on the Group Register. This is sometimes referred to as a “class action”.

The benefits of GLOs in these cases against the banks are substantial: a GLO claim is automatically assigned to the multi-track, and so funding can be obtained from the Legal Services Commission if a sufficient number of claimants are eligible for Legal Aid. This would allow for proper representation by solicitors and enable a litigation team to be put together for consumers. Preliminary discussions have taken place with the Legal Services Commission and funding could, in principle, be granted for such GLOs. This would allow consumers to have their own interest advanced properly by a substantial legal team, and ensure that no deals are struck behind closed doors by the banks and the regulators without their involvement.

But before more detailed discussions and preparatory steps can be taken, it is important to establish whether there is sufficient interest from claimants for these GLOs to go ahead. There have been indications from the Courts that this may be the most sensible way to deal with the tens of thousands of claims already in the system, and the hundreds of thousands that may well follow. It should be noted that a Court has powers to order such a GLO of its own initiative and can add additional claimants to the Group Register. It may be better, however, for such initiative to come from consumers themselves.

To that end, please take a moment to consider the following:

If you have already issued your claim, would you be interested in joining a Group Litigation Order?

If the answer to that question is Yes, please reply to this post stating:
·which bank (or banks) you have a claim against
·whether you are eligible for legal aid (see below)
Please do not post any additional information at this stage, as you may be contacted later by private message for any additional information. Please note there is a separate post for discussion of the proposed GLOs, so please do not post any comments or discussion within this post.


Once the data from this poll has been collated, a further post will set out progress on the current discussions with solicitors and the Legal Services Commission in respect of GLOs.

Legal Aid criteria. If you can answer YES to both of the following criteria, you should be eligible for legal aid:

• Income: is your gross income £2530 per month or less, or are you in receipt of Income Support, Income Based Jobseeker's Allowance, Income Based Employment and Support Allowance or Guarantee Credit?

• Capital: is your capital (savings, etc) less than £8000, or are you in receipt of Income Support, Income Based Jobseeker's Allowance, Income Based Employment and Support Allowance or Guarantee Credit?

When calculating your capital, you should include any equity which is over £100,000 in your property (though you can deduct up to £100,000 for any mortgage on that property).

Thank you for taking the time to read this information and responding to this post. Hopefully, with your support, we can join enough claimants together on GLOs to properly protect the interests of consumers and to ensure a fair result on compensation for these bank charges.


Thomas Brennan
Barrister
Atlas Chambers

[Michael Browne]

No takers on this?

[TUTTSI]

bump.....

[shrek40]

I'm willing to try. I will however need step by step advice along the way. Count me in! Regards Colin

[Goldlady]

Halifax and LTSB - about 1k each. Eligible to reclaim court costs, not sure about Legal Aid. Have not yet issued proceedings.

[pompeyfaith]

Co-operative Bank PLC i had one successful claim prior to the test case but the bank is still adding unfair charges to my account low income due to benefits so should qualify for legal aid.

Which yes it does go to show that banks are still intent on adding unfair charges when they have been caught out with there trousers down.

Issued another claim with the bank but it is on hold pending outcome of test case.

Regards

Pompeyfaith

[darftblerk]

I have a current claim against Barclays that is on hold. I can answer yes to both questions, but I have sought legal aid for the case I have, just paid the CC fees and filed it.

[photoman]

I would like to see a GLO taken in respect of two issues.

Firstly, the manner in which the OFT case has somehow magically been considered as equally applicable to charges upon small business accounts (despite no consideration at all of any such cases or T&C's).

Secondly, a group of cases that can test the issues of limitation, and perhaps set some precedent in this area too.

[tifo]

I'd be interested, but does this only apply to current account claims or credit cards as well?

I have a current account claim against HSBC for around £750, without interest. Bank has offered some £200 under 'hardship' but nothing more and i haven't accepted. I have a CCJ for this from 3-4 years ago but i am now aware the bank has not complied with the OFT determination to send me, in writing, details of the overdraft, or so i think.

in addition, i have quiet a few claims on credit cards, now sold to DCAs, with no valid agreements from any and so would like to reclaim ALL that i have paid under an invalid agreement. Many of these cases have gone through the FOS and the bank has offered to pay the DCA, who are not a part of the complaint at any time and have never been contacted by the FOS, who in turn state they have no power to include a third party to a complaint but seem to have the power to pay them.

i don't think i can get Legal Aid as i have equity in my house and it's likely to be more than £100,000, though the property has not been valued in 10 years (new build). Due to my credit score, i cannot borrow etc.

my income is less than £2,530 per month.

[JGJ]

Group Litigation Order, excellent idea I am more than interested.
Lloyds TSB are my ex Bankers
Fit into critera for Legal Aid.
Avid supporter of CONSUMER ACTION GROUP and Tom Brennan.
"EXEMPLO DUCEMUS"

[Carpetbagger]

Count me in:

NatWest, claiming about £1,800 with interest which is increasing all the time.

Yes I do qualify for legal aid.

[AA99]

Nationwide Flex Account £4,500, on Income Support & Disability Living Allowance

[lenny100]

Lloyd's Tsb for 6,000 and growing every month due to their new charges which send me over the limit every month as i am living on benefits only due to ill health
would pronely qualify of legal aid.

[Ragtaggeorge]

Barclays current just filed, charges greater than OD they want repaid. Qualify for legal aid - seems like a scheme to keep barristers in employment though. Could we not instruct someone who would be our creature like for example the number one CAGER.

[caro]

Tom has been a member of CAG for quite some time and had a very high profile claim himself. He has been and continues to be a staunch campaigner in the fight against charges.

http://www.consumeractiongroup.c o.uk/forum/general/80804-tom-brennan-NatWest-must.html

[tentonhampster]

I'm absolutely in on this. Am owed by nationwide (for about £1k) and NatWest (for about £400). I have complained to the banks themselves, but have not filed anything with the courts as didn't think it was worth it with the £130 until the OFT case progressed.

Can restart both of these cases fairly easily though. Am eligible for legal aid.

[Tom Brennan]

Bank charges waiver direction - monthly reporting Bank charges waiver direction - monthly reporting Thank you to everyone for your input so far.

If you have registered your interest, I will have sent you a PM for further information about your claim. If you haven't already issued your claim, then I do not need to approach you at this stage, so please do not issue your claim simply for the benefit of these proposed GLOs.


We are still at an early stage with these proposed GLOs, although I am expecting to make some real progress in the near future. In principle, I am looking for claimants who are eligible for Legal Aid so that we can get proper funding for the proposed GLOs. We need this funding so that we can get a dedicated legal team in place, including solicitors and barristers. As you may appreciate, these proposed GLOs would be a substantial undertaking that could not be pursued by a lone individual, even an experienced lawyer. Getting legal aid funding is therefore vital if these GLOs are to proceed. Whilst I appreciate Ragtaggeorge's sentiments about keeping lawyers in employment, please note that I am not getting paid for this work, and there is no guarantee that I will even be part of the GLO legal team, assuming that we can get Legal Aid Funding. My primary concern is that consumers are properly represented and that they are able to get back every penny that they are owed.


I must stress at this stage that I am not offering anyone legal advice on their claim; I am merely gathering information with a view to submitting legal aid applications for the GLOs and for gathering numbers for those solicitor firms that have expressed an interest in the GLOs. If anyone with a claim still wishes to register their interest, please PM me, and I will do my best to respond as soon as I can.


Thomas Brennan

[alex_the_lad]

I am interested in being a party to a GLO. My claim against is against Abbey and currently stayed at Nottingham County Court. I believe that I am eligible for Legal Aid.

[citizenB]

I have only just stumbled across this thread and would be interested in a GLO I have already submitted my claim, paid all the fees and then had the claim stayed. £2,000 + and climbing daily due to interest.

I am not eligible for legal aid though

[kennyh]

Still playing 'catch-up' after a couple of years. We would wish to take part unless we're too late of course and both I and my better half appear to be eligible for legal aid adopting the criterion mentioned earlier.