frequently-asked questions
complaints about bank charges
what's happening on complaints about unauthorised overdraft charges?
In April 2008 the High Court issued a ruling on an important "test case" brought by the Office of Fair Trading (OFT). This "test case" involves bank charges for unauthorised overdrafts.
The High Court ruling answers some of the legal questions about bank charges – but not all of them. And the banks have said that they want to appeal some aspects of the ruling.
In the meantime, the ombudsman service – and courts across the country – have put individual complaints about bank charges on hold, while waiting for the outcome of this "test case". And the Financial Services Authority (FSA) has agreed that banks can suspend their work on complaints about unauthorised overdraft charges, until the legal position is clarified.
what does the ruling issued by the High Court in April say?
The OFT has described the ruling as an important early milestone – but there are still legal questions to be dealt with, as well as the appeal by the banks against the ruling.
The OFT – who took the "test case" to the High Court to get answers to important legal questions about bank charges for unauthorised overdrafts – has published a questions-and-answers section on its website about the current legal position. The FSA – who have agreed that banks can suspend their work on complaints about unauthorised overdraft charges, until the legal position is clarified – have also set out information about what the ruling says and what happens now.
I'm not happy with my bank's response to my complaint about charges – can the ombudsman get involved?
We need to know the final outcome of this important legal action, before we can make decisions in individual complaints about unauthorised overdraft charges. The law is one of the things that the ombudsman has to take into account when we decide cases. So we have decided not to continue our work on unauthorised overdraft charges until the legal position has been clarified.
my complaint is already with the ombudsman service - what does the "test case" ruling mean for me?
If you have already referred your complaint about bank charges to the ombudsman service, this means we will continue to hold onto your case – until the important legal questions have been answered. You don't need to do anything else right now. We'll be in touch with you, when we have news to report.
I haven't complained yet about unauthorised overdraft charges on my account - does this mean I'm too late?
You can complain now to your bank or building society - or you can wait until the "test case" issues have been resolved. If you complain now, your bank or building society must acknowledge and record your complaint – and keep you updated on developments in the "test case". But the complaint will not be dealt with until the legal position has been clarified.
what about complaints that involve bank charges as well as other banking-related problems such as financial difficulty?
It should usually be possible to deal with all the parts of a complaint except the part that relates specifically to whether bank charges are lawful or not. So it's likely that only the bank charges issue would remain on hold – while we wait for the important legal questions in that area to be settled.
If you have a case of genuine financial difficulty, your bank or building society must still handle your complaint. If you're not happy with their response, we can look at whether we will be able to deal with your case before the legal position on bank charges has been settled under the "test case" legal action.