Today see's the start of a test case in the High Court that could change the face of UK banking forever. Seven major banks and Nationwide Building Society are being challenged by The Office of Fair Trading (OFT) to justify the charges made for unauthorized overdrafts and for returning unpaid items.

The charges which can often be in the region of £30 per item or occasion are earning the banks over £10 million each day. The OFT claims the charges are unfair, the banks say "they are completely legal". And represent a service not a penalty. The OFT will argue that the charges come under the scope of the 1999 Unfair Terms in Consumer Contracts Regulations.

In the last few years as the campaign against unfair charges has grown, millions of customers have successfully reclaimed money from their banks. Some sources suggest as much as £500 million has been repaid by UK banks prior to the test case.

As Ben Waite, Managing Director of Bank Talk says, “Maybe now UK banks are finally getting the scrutiny they deserve. Customers of UK banks have for too long put up with unfair penalty charges which in many cases have caused severe hardship for people who can least afford them. Unauthorised bank charges are just another example of rip-off Britain. Thankfully, their time is almost up”.

And as you would expect, Bank Talk is following the High Court test case very closely.