21 November 2007
The Financial Services Authority (FSA) claims that the 'waiver' on the handling of complaints in relation to unauthorised overdraft charges is working effectively, but Which? feels there is more to be done.
Doug Taylor, personal finance campaigner, Which?, comments:
“We are pleased that the FSA has acted on our requests to investigate banks changing their terms and conditions (T&Cs) in the run up to the test case.
“That said, we do not agree with them that everything is working as it should. The FSA needs to be more proactive in ensuring that there is no customer loss as a result of any changes.
“Since the test case was initiated in July, some banks have muddied the waters by amending their T&Cs to make their charges appear fairer. The FSA says that it will keep an eye on how any changes will affect customers, but we want clarification on how they will do this and how it will affect the test case itself.
“Consumers have no choice but to stick to the waiver. There is a danger that some banks could breach it without any fear of retribution from the FSA. We would question the continuation of the waiver at all if banks are able to keep moving the goalposts like this.”
-Ends-
Which? also believes that the issue of hardship needs further clarification. At present there is no clear guidance for consumers about what the OFT or FSA consider to be a state of hardship.
Consumers should not be put off from making a claim if they feel they have been charged erroneously. Go to www.which.co.uk/bankcharges to download template letters and fact sheets.
The waiver was granted on 27 July 2007 to support the test case on unauthorised overdraft charges brought in the High Court by the Office of Fair Trading (OFT). The purpose of the test case is to bring certainty on whether these charges are fair and lawful. The waiver requires complaints to be put on hold until certainty is established and complaints about these charges can be dealt with consistently and fairly. The FSA pledged to review the waiver after two months.
