The Supreme Court has delivered its ruling on the test case seeking clarification on unauthorised overdraft charges.
The Supreme Court confirmed a unanimous decision in favour of the Banks. The ruling stated that charges for unauthorised overdrafts are part of the price or remuneration of the services provided under the current account contract. As a result, these charges are not subject to an assessment of fairness under Regulation 6(2) of the Unfair Contract Terms in Consumer Contracts Regulations 1999.
We recognise that this issue has been of real concern to some of our customers and we are pleased that this decision now brings clarity for all parties.
What this means for any complaints
Following the ruling, the Financial Services Authority (FSA) confirmed that its waiver regarding customer complaints had now lapsed.
We will now resume processing all relevant customer complaints that have been on hold for the last two and half years, in accordance with FSA complaint handling rules.