Office of Fair Trading v Abbey National plc and Others [2009] UKSC 6, [2009] EWCA 116, [2008] EWHC 875 (Comm) is a case about bank charges in the United Kingdom, concerning the situation where a bank account holder goes into unauthorised overdraft.
When a bank customer uses an unauthorised overdraft and then makes a payment request (whether by standing order, direct debit or using an ATM or debit card), banks generally make the payment as request...
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Office of Fair Trading v Abbey National plc and Others [2009] UKSC 6, [2009] EWCA 116, [2008] EWHC 875 (Comm) is a case about bank charges in the United Kingdom, concerning the situation where a bank account holder goes into unauthorised overdraft.
When a bank customer uses an unauthorised overdraft and then makes a payment request (whether by standing order, direct debit or using an ATM or debit card), banks generally make the payment as requested, and then charge fees (which may include "paid item" charges and unauthorised overdraft fees) which accrue on a daily basis whilst the unauthorised overdraft continues. The Office of Fair Trading ('OFT'), acting on behalf of consumers, challenged these fees under the Unfair Terms in Consumer Contracts Regulations 1999 ('UTCCR'), which implements European Union Unfair Contract Terms Directive. OFT claimed the sizeable fees charged were not a fair reflection of the banks' costs but were instead a penalty upon the consumer or bank account...
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