CAG: High likelihood the OFT will find against the banks

Posted 2008-04-30

Following the landmark ruling by the high court, that allows the Office of Fair Trading (OFT) to investigate overdraft charges imposed by banks, the founder of the Consumer Action Group (CAG) believes the body will almost certainly find that they are unfair.

Marc Gardner noted that should the office come to this conclusion, there will likely be an appeal which could see the court of appeal overrule or rdefine the high courts decision.

He said it was unlikely that the banks themselves will decide to refund customers voluntarily, and predicted a slow process which will probably see many people never being reimbursed.

"I cannot believe for one moment that the OFT will say to the banks that theyve got to put their hands up, investigate their databases, contact everybody theyve taken money from and refund it. My personal view is that there will be a repayment scheme agreed between the FSA (Financial Services Association) and the banks," Mr Gardner stated.

According to estimates from the BBC, banks refunded nearly £748 million to over 378,000 people last year.

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