Bank charges court case opens

The court case into unauthorised bank overdraft charges began today. The Office of Fair Trading has brought the test case to determine whether the penalties, which can cost customers up to £39 a time for exceeding their borrowing limits and for bounced direct debits and cheques, are legal and fair.  If the High Court judge agrees with the OFT, this should open the floodgates for compensation on a large scale for victims of unauthorised overdraft charges.  On the flip side, the banks may start to charge all customers for everyday banking, for example by levying a monthly fee, to recoup their lost income.