While a claimant who was seeking GBP2,545 in recovery fees argued that Lloyds TSB violated the banking regulations by imposing charges for having an unauthorized overdraft, District Judge Cook, at Birmingham County Court, concluded that they were legitimate and legal.
Cited in This Is Money, Judge Cook said: Having held that the charges complained of are not charges for breach of contract but part of the price of the services provided by the bank…He has not satisfied me that he has any ground in law for recovering from the bank the amount of any charges which he has paid to it.
The claimant is reportedly considering an appeal to the court’s decision.
This case has come as a blow to consumers as, until now, many claimants had been successful in reclaiming charges, with banks settling the case out of court to avoid standing before a judge.
