Office of Fair Trading lose Supreme Court case

A Major blow to millions of customers has been dealt by a Supreme Court ruling, who is trying to recoup billions of overdraft bank charges. The ruling has over turned other rulings which allowed the Office of Fair Trading to investigate the fairness of charges for unauthorised overdrafts.

An estimated £2.6bn of annual income for the banks was at stake, who had appealed against earlier rulings. In total seven banks and a building society wanted the ruling overturned. The three-day appeal in the House of Lords in June, the banks argued they would receive a deluge of litigation if the decision was made against them.

This however will not close the door on the OFT’s investigations and may well not resolve the myriad cases that are currently on hold. OFT said even if they lost, they would still try to use other powers to attack overdraft fees.

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