Barclays must suspend penalty banking charges, judge says
August 28, 2007 by admin
Filed under News, News-Banking
Barclays Bank must not take penalty overdraft charges from their customers until the High Court has reached a verdict in the test case, it has been reported.
Judge Abraham, of Luton County Court, adjourned the case of Nadine Fry before the outcome of a test case in the High Court was revealed.
According to The Times he told the court: “until the expiry of the stay, no further penalty charges or interest on penalty charges should be debited to the claimants account by the defendant”.
Personal banking customers have been reclaiming bank charges recently as part of a widespread consumer revolt against the extra fees.
Barclays alone has repaid nearly £90 million in charges this year.
A spokesman for Barclays Bank said: “All county court judges are saying different things. This is why the banks are going to the High Court to get some clarity around this issue.”
The High Court’s ruling is expected in February 2008. A ruling in favour of customers could result in the end of free banking and losses of £10 billion for the banks.
