Banks lose their appeal against a High Court Ruling on unfair bank charges - 27th Feb 2009

Banks have lost their appeal against the high Court decision that Office of Fair Trading (OFT) is entitled to investigate the fairness of bank charges.

Tens of thousands of claims against the bank charges are on hold pending the outcome of this legal battle.

The Appeals Court upheld the decision by the High Court that OFT has the power to investigate claims of unfair bank charges. Sir Anthony Clarke, Master of the Rolls, dismissed the banks' appeal and told them they should now allow the OFT to decide whether their charges were fair or not.

The banks are believed to applying to the House of Lords for the permission to appeal against the latest defeat.

Office of Fair Trading (OFT) welcomed the court ruling and said, "The court found that these terms are not part of the core or essential bargain between a consumer and their bank, and therefore consumers do have protection under the Unfair Terms in Consumer Contract Regulation for these terms”