'Legal basis for bank charges' must be identified

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'Legal basis for bank charges' must be identified

Wed 30th Sep 2009

The court ruling on bank charges should be used to clarify the legality of the fees, rather than invite claims for refunds, an industry insider has suggested.

David Kuo, director of the Motley Fool, commented that he did not think there should be an automatic payout for people who have refund cases outstanding.

He remarked that the most important part of the case for many interested parties is whether the Office of Fair Trading is allowed to intervene and examine the justification of the charges.

However, Mr Kuo claimed that the banks could "see the writing on the wall" for their fee system as it stands now.

"We need to go through all the legal procedures, even if it needs to go to the Appeals Court or even up to the European courts and then draw a line under it," he added.

This month, Royal Bank of Scotland announced that it would be reducing its charges for transactions that take people over agreed credit and overdraft limits.

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