| Cases need freezing |
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With many customers claims for bank charges refunds on hold pending the outcome of the High Court Test Case, the judge in the case has suggested that the tens of thousands of cases should be kept on hold for the time being. Mr Justice Andrew Smith said that while he has no power to direct the county and district courts to extend the ‘stays’ "Many proceedings have been on hold in the expectation that this hearing will assist the management of the county court litigation" and "I haven't discerned anything during the hearing that undermines that expectation, and I don't mind that being conveyed to those charged with managing the county court cases". The court has been told by the banks that the stays will automatically end this week on many cases. Some judges had stipulated that the stays on current and new claims should end on 1st of February or when Test Case hearing has ended. If the lower courts take the High Court judge’s advice then claims will remain in the pipeline awaiting Justice Andrew Smith’s verdict. Banks have to log any new claims but are not required to process them while the case continues. Already the banks have returned an estimated £½ billion to over 300,000 customers without admitting any liability. The High Court case has now lasted 13 days and in their latest defence many of the banks have attacked the Office of Fair Trading claim that their contracts fail to explain what the charges are for. Bankim Thanki, QC for Lloyds TSB said customers would have no difficulty understanding what the charges are for and suggested the OFT was drawing very subtle distinctions even for lawyers. He also disputed the OFT claim that no real service was given when considering whether an unauthorised overdraft should be granted. The procedures and staff that were in place to consider unauthorised overdrafts were clear indicators of such a service, he said. The case is expected to finish this week but any judgement which could take many weeks or even months. Any decision is then likely to be challenged by the losing side. |
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