Determined to reform system after banks win overdraft case
MINISTER for Consumer Affairs, Kevin Brennan MP, believes the banking overdraft system needs to be reformed in order to be fairer to consumers.
The news comes after the Supreme Court overturned an earlier court ruling that allowed the Office of Fair Trading to investigate the fairness of charges for unauthorised overdraft charges.
"This ruling on overdraft charges will be a great disappointment for many consumers," said Mr Brennan.
"But it means we are even more determined to reform the system so that consumers get fairer treatment by the banks in the future.
"Bank accounts should be easy to understand and consumers should not feel stung by excessive costs."
Sarah McCarthy-Fry, Exchequer Secretary to the Treasury, added, "Consumers, who have been waiting a number of years, will be extremely disappointed with this outcome.
"It's clear that in the past, banks were not thinking enough about their customers and that needs to change for the future.
"While the decision on past charges has not gone in favour of consumers, we are determined to ensure the system is made fairer in the future.
"The Government will work with the OFT and Financial Services Authority to reach a new framework for fairer bank charges going forward."
