Dusary v Bank of Scotland

[grant123]

Hi Dusary

 

Have you seen the articles on the BBC website and MSE re the new high court test case ??.

 

Cheers

[Dusary]

Hi Grant,

 

Macboy has just pm'd me about it too!

 

I'll go have a gander!

[Dusary]

From the BBC website:

BBC NEWS | Business | Banks agree to charges test case

 

 

Banks agree to charges test case

 

The outcome of the case could change the way banks do business

 

A number of UK lenders, including HSBC, Lloyds TSB, Royal Bank of Scotland and Nationwide, have agreed to go to court in a test case about overdraft charges.

On Friday, and with the banks' backing, the Office of Fair Trading will file an action arguing that charges are unfair.

Banks have had a long-running battle with consumers over whether fees levied for unauthorised borrowing are legal.

Tens of thousands of cases have already been settled out of court, costing the banks millions of pounds.

Market watchdog the Financial Services Authority (FSA) will allow banks to suspend dealing with any claims for repayment of overdraft charges filed against them until the test case has been decided.

However, the banks will still need to make a note of any claims lodged, and will have to honour offers to settle that were made before the test case and FSA waiver were announced.

 

Unfairness rules

Angela Knight, chief executive of the British Bankers' Association (BBA) said that legal clarity was needed to end uncertainty for banks and consumers alike.

She added that the banks had not softened their view that the charges were legal and fair, and said that the lenders could only "start looking at the issues underneath" once they had a ruling.

The Office for Fair Trading (OFT) said that the lenders had approached the UK's financial watchdogs in order to sort out the problem and agreed to the test cases in England and Wales, Scotland and Northern Ireland.

LENDERS IN TEST CASE

Barclays

HSBC

Royal Bank of Scotland

Clydesdale Bank

HBOS

Abbey National

Lloyds TSB

Nationwide

 

 

The OFT said that on Friday (July 27th) it would commence proceedings in England's High Court for "a declaration on the application of the law in respect of unauthorised overdraft charges".

 

At the heart of the court case will be whether or not the overdraft charges are a fair reflection of the costs incurred by banks.

Under current rules, the banks cannot make punitive charges when customers exceed their overdraft limit without prior permission or write cheques when they have insufficient funds in their accounts.

Customers have been arguing that the fees levied far exceed the costs incurred by the banks.

"The OFT considers that a quick determination of this point of principle will assist in securing a clear and orderly resolution of the fairness of these charges," it said.

 

Out of court?

To date, the banks have been reluctant to contest such cases, usually settling out-of-court.

If a bank were to do so and lose its argument that the charges were fair, it could lead to many more bank customers getting refunds, analysts said.

The BBA's Ms Knight said that the banks had been unwilling to take an individual to court as the case would be different from person to person and would not offer a definitive answer on the legal issues being questioned.

She declined to say how much the banks stood to lose should the test case go against them, but said that it could affect the way they do business in the UK. There has been speculation that lenders could end their free consumer bank accounts should the ruling go against them. "We are defenders of free banking," Ms Knight said, adding that while it was too early to say what the outcome of the court case would be "we cannot say it will have no impact".

 

Whoops!

 

I see that Zoot has posted at sticky relating to this on all the sub-forums!

 

http://www.consumeractiongroup.co.uk/forum/halifax-bank-bank-scotland/107582-oft-test-case-what.html

 

and, AlanfromDerby:

 

http://www.consumeractiongroup.co.uk/forum/announcement.php?f=9&a=107

[Linjie]

Hi Dusary,

 

I am replying to a message you left on my thread some time ago. I put forward my S.A.R. and have received that lengthy reply you mentioned from the Halifax.

 

Standard reply - lots of people making requests - may take some time - we don't accept responsibility etc.etc.etc.

 

Soon be time to remind them to reply to me.

With regard to OFT test case, I will press on with my claim and hope for a good outcome.

 

Hope things are going well with you.

[Dusary]

Hi Dusary,

 

I am replying to a message you left on my thread some time ago.

40 days later? (Irony!)

 

I put forward my S.A.R. and have received that lengthy reply you mentioned from the Halifax.

 

Standard reply - lots of people making requests - may take some time - we don't accept responsibility etc.etc.etc.

 

Soon be time to remind them to reply to me.

 

Mmm! Don't know that they will reply now! With the Test Case underway - suspect they may just put you and the other 1,000s "on hold".

If the OFT Case IS successful - can you imagine the backlog they will have to deal with? Further chaos I suspect!

With regard to OFT test case, I will press on with my claim and hope for a good outcome.

 

That's the spirit!

[anney63]

Hello Dursary.

I have rejected an offer from Halifax. They have paid money into account and I now feel that we might just as well accept as they have paid the 6 years and we are only fighting for 6 charges pre the Statute of Limitation. As it is over 6k Can I now go back and accept ???

[sea-sidelady]

Have you seen this dusary.....

 

Gives people a visual help, if they dont know how do do something...

 

http://www.consumeractiongroup.co.uk/forum/welcome-consumer-forums/107001-how-do-i-dummies.html

[suzieblooz]

Think I've kinda won! Got an offer from the FOS for one account for full amount of charges but with no interest. As the FOS letter was dated the day before the announcement from OFT I have been told the bank will have to honour the offer. Am not going to turn cartwheels until I see the money in my account, but have accepted the offer. Won't give up on no. 2 account though, no matter how long it takes!

[willmurr6]

Hi Suzibooz

I also received a letter from FOS offering my charges in full dated the same day as yourself,so have sent off my letter of acceptance so just a waiting game again to see if they pay up.Will keep an eye on your post to see how it goes,i will also update on any developments.

[muggles]

i too have recieved a settlement letter, and sent it back to rbos on 27 july, i do hope we still get paid as nobody seems sure if we will or not, i also sent sandy watt an email on the same day attatching the signed settlement letter, she emailed me back to say they are unable to open attatchments due to security... mmm barclays did.

does anybody know if they are still paying out at this stage of the game or have we all been put on hold....

[**Tilly**]

hi muggles have a look in here

http://www.financial-ombudsman.org.u...quickguide.pdf

[Dusary]

Hi everyone - from my hols.

 

Missed out on all the "FUN"!

 

Update: ICO e-mailed me to say that they had given HBOSplc 14 days (from August 3rd) to come up with the info on the mssing accounts.

 

Had filed a claim on another ac**** for c £512 BEFORE the test case!

 

Stay cool, everyone!

[Dusary]

EEEK!

 

Typed in A C C O U N T - and got asterisks!

[jontah 2006]

EEEK!

 

Typed in A C C O U N T - and got asterisks!

 

 

 

continue to have wonderful holidays.

missing your wit on the boards, in these uncertain times. :???:

[kennythecelt]

Great to hear from you!!!!!!!!!!

Have a great holiday and take care Dusary, my friend!!

[MacBoy]

Are you sure you typed account?

 

Enjoy your holidays, Dusary!

 

Mac

[kennythecelt]

Typical!!

[MacBoy]

So what exactly are you saying, Kenny?

[kennythecelt]

Not a lot- as usual!!! 8)

[deadlykiss]

hi Dursary , hope you enjoying holss ,, have fun

[grant123]

Hi Dusary

 

Wonder if you could cast a little light, I've put both my claims in down south, just getting my court bundle together.

 

Do you have any ideas as to where I could get some BOS t and C's from 2002 onwards ?

 

Cheers

[kennythecelt]

Hi Grant

Dusary is on vacation. I will have a look and see what I can find- don't worry!!

Are you still over on Scotland, sub forum of general?

Would you rather be moved here or are you happy there?

[miz_print]

Enjoy the rest of your hols dusary! hope you get sorted soon xx

[overflow]

Hope your havin a good rest Dursary.

And lets keep our fingers crossed everthing comes right for you soon

 

Good Luck

 

Regards

[johndough]

Whoah! This has been a REALLY helpful thread although I do feel like I've just lived through several month's worth of bank grief in the space of an hour. Might need to lie down to recover now. I also feel heartened already that I got a hold of my statements without all your hassle - your persistence is well worth reward. I will digest all this and get ready to send my prelim letter shortly. I am with HBOS in Scotland as well.