Consumer Panel urges action to make bank charges fair – despite technical Court Judgement

25 November 2009

The Consumer Panel is disappointed that the Supreme Court bank charges judgement has today ruled against the OFT on the point of whether or not these charges can be considered fair or not under the Unfair Contract Terms.

However, it remains the case that there is no justification for such high unauthorised overdraft charges hitting consumers when they are most vulnerable.

The Consumer Panel is calling on the banks to get round the table with the OFT and FSA and consumer groups to agree a fair solution going forwards.

Adam Phillips, Chairman of the Financial Services Consumer Panel said:

"Consumers have been left in the lurch with complaints about bank charges for long enough. If banks are serious about treating customers fairly, they should realise that it’s not fair to fund their retail banking operations through charging high rates to one section of their customers.

"The OFT and FSA and banks must now engage in discussions to get a clear resolution and fair charges for bank customers. The Consumer Panel stands ready to participate in any discussions to ensure the consumer voice is represented effectively and to get fair treatment for consumers."

Notes to editors

1. 1. The FSA established the independent Financial Services Consumer Panel in December 1998 to advise its Board on the interests and concerns of consumers and to report on the FSA’s performance in meeting its objectives. The Consumer Panel has statutory status.

2. The emphasis of the Panel’s work is on activities that are regulated by the FSA, although it may also look at the impact on consumers of activities outside but related to the FSA’s remit. More information about the Panel's work is available on our website – www.fs-cp.org.uk.

3. There are currently fourteen members of the Panel as listed below (for further information on individual members, see the Panel's website – www.fs-cp.org.uk)

   Adam Phillips (Chairman)
   Kay Blair
   Michael Chapman
   Stephen Crampton
   Caroline Gardner
   Bill Martin
   Claire Whyley

   Tony Hetherington
   Nick Lord
   David Metz
   Lindsey Rogerson
   Carol Stewart
   Mike Dailly