Overdraft Charges Case Reopens Today

The High Court case which will decide on whether or not bank charges are fair has entered a further stage today.

A consumer revolt over the penalty fees, which are levied for customer offences such as breaching overdraft limits, led to the case being called in 2007. Hundreds of thousands of claims for repayments of the charges have been put on hold, pending its resolution.

Presiding judge Mr Justice Andrew Smith ruled earlier this year that the fairness of the charges could be decided on by the Office of Fair Trading (OFT) - a decision which the seven banks and one building society involved in the case are appealing against. This week, however, he will rule on a separate issue: whether or not bank charges which date back for several years can be claimed for by customers.

In months to come, the court will then rule on whether the charges themselves are unfair - with the OFT also conducting its own ongoing investigations into the matter. However, a successful appeal from the banks will complicate the process still further, putting back an ultimate decision by months.

The current High Court hearing is anticipated to last for three days.