uSwitch comments

on High Court decision that most consumers will not be able to use common law to challenge bank charges

In response to the High Court judgement that most consumers will not be able to use common law to challenge bank charges, Simeon Linstead, head of personal finance, uSwitch.com comments: "The recent ruling from the high court comes as a huge blow for customers hoping to reclaim some of their money from the big banks.

However, in the wake of the recent financial turmoil, it is no surprise that banks are breathing a huge sigh of relief.

Under current market conditions, any further debt could have catastrophic effects on any one of the big banks.

Our research has shown that one million bank charge claims worth ?713 million have been frozen since the start of the high court test case last July, and it looks like they are likely to remain that way for the foreseeable future.

"The recent ruling is a double edged sword for consumers: on Wednesday Chancellor Alistair Darling announced a part-nationalisation plan for UK banks using ?50 billion of UK taxpayers' money.

If the court chose to insist upon the repayment of the bank fees in question, it could be a catch 22 for consumers.

With their hard earned cash already being poured into the ailing banks, they could end up effectively paying themselves back.

"There is a still a glimmer of hope for consumers as not all of the banks involved in the test case were included in the recent ruling, and there are still further discussions to be had regarding the terms and conditions of Lloyds TSB, and Royal Bank of Scotland Group that owns NatWest.

The OFT still has authority to examine the fees under the 1999 Unfair Terms in Consumer Contract regulations following its high court victory in April.

It is after these hearings and any subsequent appeals that consumers will finally receive a long awaited resolve.

With the next stage not starting until the new year, it looks like consumers will remain out of pocket for a long while yet.".

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