H.O.L Test case appeal. Judgement Declared. ***See Announcements***

[T2upNorth]

Hi I'm not sure if this has been asked elsewhere...

So far there has been a lot of discussion over wether the bank charges are penalties- and I understand that, legally, they have been found not to be.

My bank, Halifax, imposes a charge of £35 for failed DD's. For example, I paid a cheque into my account on Friday 22 May. Because of the bank holiday, this cleared on Friday 29 May. My account showed the cheque as uncleared funds. However, a direct debit attempt was made on Thursday 28 May, which the bank refused, and charged £35.

So I'm still unclear - how is that not a penalty? If they'd honoured the DD (after all it is reasonable to assume that the cheque would clear and my salary is always paid in on the last Friday of the month) - they could argue that is was a fee for unauthorised borrowing. But in this case, there was no borrowing!

[T2upNorth]

A slight twist to the topic but, given the arguments about fairness, cross-subsidy and price of the service - bank charges appear to follow a similar path to coucil tax and, indeed, all taxes.

[T2upNorth]

Yes, the product looks good - provided you are an existing Santander mortgage holder. Obviously, it would be nice to see this type of product without the strings attached, but where is the incentive for the banks to do that?

From a market point of view, I hope Santander do well with it - the more people who switch away from the charging banks the more they will need to adjust to compete.

[T2upNorth]

Hmm, "a government source" on BBC Breakfast suggests 2015 before we get a conclusion.

[T2upNorth]

Nooooo. It's 9.45am, not 8.15pm...

 

Bleeding BBC...

 

 

[T2upNorth]

I do think there will be negotiated settlement here. My prediction;

1. OFT win this part of the test case.

2. "Fair" level of fee is fudged by the banks and OFT at £5

3. Automatic refunds issued for the original charge less £5

4. if anyone wants more than that they have to go to court (I.E. refund of interest paid on the charges)

5. banks happy as they get to keep part of their ill gotten gains

6. most consumers happy because they get a nice little windfall

 

 

Assuming their Lordships agree with the OFT....

 

But the banks will still need to weigh up what, if any, benefit there will be in fighting on. Given their mathematical abilities I think they will see a benefit in paying councel 10's of millions to delay rather than returning 10's of billions to customers.

[T2upNorth]

A bit of off the wall reporting on the case here:

 

Please feel free to tear into the comments posted...

 

(edit)

Edited November 23, 2009 by freakyleaky
Unauthorised link removed

[T2upNorth]

Damn, I need to sleep but it almost feels like XMas eve....

[T2upNorth]

T2 Up North

 

Halifax tend to slap charges on by stealth. I Stopped getting letters off them, they just took the charges

 

 

That's naughty - they have to inform you prior to robbing you. I get a "letter" in my online banking telling me they will steal from me in x days, usually 21 I think. The letter is always within 2 days of whatever trivial thing they consider worthy of a £35 slap on the ass.

[T2upNorth]

Well, here it is. (Full ruling attached)

 

I for one will be closing my Halifax account and going to a credit union.

 

The Supreme Court may feel the need to protect the banks from justice, I don't.

 

 

My bad - looks like wrong one was posted on SC site.....

Edited November 25, 2009 by T2upNorth

[T2upNorth]

send this link to everyone on your facebook page and in your contacts list in email

 

https://email.number10.gov.uk/Contact.aspx

 

it is so important

 

 

Sent to Gordon:

 

Although not entirely shocked by the result I find it astonishing that it has taken over 2 years for the most senior legal minds in the UK to come to this conclusion. This matter has been festering for to long and the government, and opposition parties have simply allowed it. Now to close the case on a technical argument, overturning 2 previous rulings, makes it impossible to have any faith in the law, law makers, government and financial institutions.

I for one will be moving, as far as possible, back to a cash economy - I will not have my money used by crooks who feel it acceptable to steal £39 in exchange for a non-service.

Also, along with many of the other 12 million who have been kicked in the teeth by this travesty, I find it impossible to even consider voting for a government who allows its employers (yes, that's us) to be regularly robbed and abused by the banks we have so kindly bailed out of trouble.

 

Have a nice day.

[T2upNorth]

signed