Consumers are one step closer to victory in the battle against bank charges. The High Court has ruled that the Office of Fair Trading (OFT) does have the power to decide whether or not the fees levied by banks and building societies when a customer exceeds their overdraft limit are fair.

This announcement is great news for the millions of people who have paid hundreds, and sometimes thousands of pounds, in overdraft charges. However, those seeking refunds are still not guaranteed their money back as the case is far from over.

Clare Francis explains what the court case is about and takes a look at what happens next.

Click here to read this article.

Do you think bank charges are unfair or do you feel that they are justified and that people who manage their current account well should not have to pay for those who don’t? If you are struggling financially and feel that bank charges are making a bad situation worse, click reply to let us know.

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Community

Two other threads already going on this but ...

I agree that unreasonable charges should not be levied. However, where it all falls down is when you get clients who simply do not care about managing their finances - and there are a lot of them about. Couple this with irresponsible Direct Debit mandates which seem to have mobile dates and you are thwarted.

No-one has a right to a bank account, and no-one has a right to steal money. This is what abusers of the banking facilities are doing. If you knowingly go overdrawn or issue cheques you cannot cash, then why are you complaining when you get charged for it? So is it right that banks charge for habitual abusers - the answer has got to be a resounding yes.

Furthermore I believe that where a genuine mistake has been made, most banks reverse their charges as quickly as you raise the issue. So what's the problem? The problem is the bleeding hearts brigade who don't manage their accounts and then expect everyone else to pick up the pieces (yes I'm waiting for the replies). These are the people who don't bother to pick up a phone, spend money they don't have and then complain when they get charged. Sorry - no sympathy. You are nothing less than a thief and should be charged. If you knowingly go over your limits regularly - why are you so surprised?

The result of this, regardless of how you stand, is that free banking is probably going to be a thing of the past. Any account is probably going to end up having a fee attached or worse. Will it help the consumer, no. Nothing changes except that now we have to find around another £10billion to sort this mess out.

Finance needs to be taught in schools and colleges and people need to have a certificate before being allowed to open an account. At least they can't then whinge that they don't understand or can't count.

UNPOPULAR SHARK!

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For every positive action, there's an equal and opposite government plan.

Well, nobody should get excited yet. The banks are likely to appeal this initial ruling and that could take another year. Remember too, this ruling isn't about bank charges being too high, it's about them having the possibility to be classed as too high. Another trial, after the inevitable appeal, will have to decide that. That will also be subject to another appeal. It could be 3-4 years before this is finally settled.

In the meantime I'd like to see main high street banks come up with new types of accounts. Accounts with a monthly fee and then minimal charges. Or accounts that don't even allow someone to go over drawn. I think there needs to be a wider range of accounts. Perhaps people with a bad history should then be forced into certain accounts...

So, axisme, you want to pay an extra £15 per month per scrounger and per pensioner in your taxes to pay for their bank charges? Tax the workers instead of penalising the greedy idiots who have more money than they know what to do with?

As pointed out elsewhere customers who abide by the current rules already pay for their 'free' banking through forfeiting interest.

Well, I wouldn't object to being given the option for it. I also think some less reliable people should only be allowed certain accounts. If you have a history of going overdrawn and then claiming charges back, only be allowed a fee based account.

shiverkitten:So, axisme, you want to pay an extra £15 per month per scrounger and per pensioner in your taxes to pay for their bank charges? Tax the workers instead of penalising the greedy idiots who have more money than they know what to do with? As pointed out elsewhere customers who abide by the current rules already pay for their 'free' banking through forfeiting interest.

Most greedy idiots keep a minimum balance in their current accounts to meet monthly expenses and move the surplus to higher earning accounts usually with other providers.The interest forfeited is then kept to a minimum.Pensioners and scroungers......lol.....they are all the same !!!

backfoot:

Most greedy idiots keep a minimum balance in their current accounts to meet monthly expenses and move the surplus to higher earning accounts usually with other providers. The interest forfeited is then kept to a minimum.

Which is the practice suggested by my own post. I fail to see what idiocy or greed is involved. Or why you're pulling a Paul Merton. The cur^h^h^h present current account arrangements are not broken. I doubt the fix will have the same universally available benefits.

It depends. I bank with Barclays and pay in quite a lot each month. I then spread it around various savings accounts and bonds. Barclays hardly give any current account interest and I quite like it that way. I feel I don't owe them something. Perhaps they do think I owe them something and perhaps they want me to make a mistake so they can hit me with a charge. I really don't want my bank thinking that they need to catch me out to justify them providing me with a banking service. For that reason alone, I'd like to see the big banks offering some kind of fee based account. Maybe I won't use it, but it would be nice to have the option of considering it.

Irony is wasted sometimes.I will spell it out.

The financially aware folk ,like you and me,do minimise the interest loss and consequently get our banking relatively for free.The system may not be broken for you or me but someone else is paying for it. The system was broken though, for those people who were overcharged by the greedy banks.They have rightly started the runaway train and yes the banks will strike back.No good whingeing about it or being angry with me,( I haven't claimed),we will just have to shop around for the best deal.

The banks were starting to introduce charging anyway by stealth,even prior to this battle, but I accept that it may bring things forward.

You are usually a good defender of the less well off ,who end up financing the better off.Why is this so different? Self interest?

No one has the right to steal that includes banks if not more so. The bank charges i received were sometimes £90 a day which snowballed more charges then more and so on. It made me sick I was in a whole I struggled to get out. Using cheques for nappies, food etc hoping they would clear on my next pay day due to charges taking all my pay, but they caught me out so many times It was unreal. Debit card payments of say £4.00 taking over a week to come out, but showing as available cash, to cause confusion i believe, boy did i have to wise up.

As for fee paying accounts, If thats how banks should be funded, thats the proper way not taking advantage of the people on their xxxxs to pay them their profits. Yes I believe people should be charged a fair/reasonable amount for going over their limit(NOT £35.00), but not use them as an excuse to run the whole banking system for the benefit of everyone else free. Its a very sly way of getting big money and slander the people who overdraw thieves makes that process a whole lot more acceptable.

I won in court over £3000 from HBOS in 06 if I was the thief I dont think the banks would pay that kind of money back! So all the people who have the financial security and perfect management of their money be careful who you judge. Life can change for anyone very quickly in ways you cant imagine. So lets get the rules made fair for the benefit of everyone in the longterm.

Banks generate 3.5 Billion a year from these charges, how can you ask if the charges are fair.

If I can not use a ATM because it is not working, Can I charge the banks a fee for not providing a service they offer me?.