Thread: Bank charges issues post test case - where will the money go?

Assuming then that the OFT confirms its preliminary view that bank charges have been historically excessive and therefore unfair: -- Bank charges refunds -- where will the money eventually go?

Estimates are that the banks liability to repay could be anything from £22 billion-£50 billion and maybe even more.
When tens of billions of pounds are returned to customers within a fairly short space of time (two years?) A lot of this money will be returned to the high Street.

·What effect will this sudden injection of a large amount of money in the hands of consumers mean for the high Street? It must have some significant effect.



After the heat - post test case issues in full

That's the thing, most of the money will end up with the banks anyway, whether directly (people paying it into their accounts) or indirectly (shopping, etc) so...

Originally Posted by Bookworm

That's the thing, most of the money will end up with the banks anyway, whether directly (people paying it into their accounts) or indirectly (shopping, etc) so...

Not really the same though Booky?

Take me for instance - many thousands could be in my bank account the Monday after they finally agree to pay up (by whatever means), but rest assured within a week (max!) I'll see to it that I've had one hell of a lot of fun with it

So any money made by the bank (via trading/loans/etc) will be very, very, small indeed

I would think (not that I advocate gambling) a short (that is, a bet that the share price will go down) on any high street bank share come Wednesday would be VERY well placed

What's the final outcome of this? Who 'won'?