Barclays Bank has followed Royal Bank of Scotland with a vigorous opening to their defence against claims of unfair bank charges. Iain Milligan QC began by explaining that Barclays considered its overdraft services to be an integral part of the bank’s arrangements for managing customer accounts.

"Barclays' case is that it is obliged to supply the whole bundle of services, for which the customer is obliged to pay the whole bundle of charges," he added. He also denied the OFT’s claim that fees were being charged before any service was provided rather than for actually providing a service.

The case is now expected to last until at least mid February with the OFT responding at length once all the 7 banks and Nationwide Building Society have been heard. Whichever side loses, the case may well go to appeal suggesting a final decision may not be known until next year. If the outcome goes against the banks it is likely to lead to a sea-change in the way current account banking is done in the UK.