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The UK's biggest banks have lost the first stage of a test case about overdraft charges.
Unauthorised overdraft charges are made when you go overdrawn without an arranged overdraft facility, when you go over any agreed overdraft limit or when there isn't enough money in your account to cover a withdrawal. These charges are often considered to be very high. Many people have complained that they are unfair and have asked for refunds.
Because there have been so many complaints, the Office of Fair Trading (OFT) is taking a test case to the High Court. A judge has decided that the OFT can apply unfair consumer contract regulations to decide if bank overdraft charges are fair or not. However, the banks may appeal against this decision.
There has still been no decision about whether the overdraft charges are unfair. There is likely to be no decision on this for some time.
Most people who have already made a complaint about unfair overdraft charges have had their case put on hold until the outcome of the test case is known. This situation has not yet changed.
For more information about bank charges, see Banks and building societies.
To find out more, if you have made a complaint about unfair overdraft charges, go to the Financial Services Authority website at: www.moneymadeclear.fsa.gov.uk.
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