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FSA extends the waiver on bank charges claims
Page last updated Saturday, 25 July 2009
What is the waiver?
The financial Services Authority, FSA, first granted the firms a waiver so that they do not have to deal with complaints about unauthorised overdraft charges in the time specified under FSA rules. In effect banks and building societies can put customer complaints on this issue 'on hold' until the test case process is resolved.
The waiver applies only to complaints about unauthorised overdraft charges. Firms must continue to deal with complaints about other financial matters, such as insurance, mortgages or other complaints regarding their current accounts, in the usual way.
Why did the FSA grant the waiver?
Until July 2007, some customers were being refunded unauthorised overdraft charges when complaining whilst others were not. The FSA felt this inconsistent approach was not in the best interests of all consumers. So on 27 July 2007, they granted a number of banks and building societies a 'waiver' to support the test case process.
How long will the waiver last?
The first waiver expired on 26 July 2008. The FSA then decided to grant a second waiver and this expired on 26 January 2009. This has been extended by a further waiver for up to six months (until 26 July 2009). The FSA will then continue to assess whether the waiver remains appropriate.
You can find more information on this by clicking here
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DebtWizard Comment
Banks normally have to resolve complaints within 28 days, but the FSA have just given them all another 6 months to resolve customer claims over unfair bank charges.
Despite being blamed for the current banking crisis', through lack of regulation, the FSA continue to ignore the needs of the consumer
Another smack in the face for the consumer as this waiver is grossly unfair because banks are still allowed to apply the charges, even though the High Court has ruled in the favour of the Office of Fair Trading, OFT. The only way a consumer can try and get some of their money back is by demonstrating hardship.
For more details on hardship claims then click here
Bank charges are a major income to the banks and one would question their stability if this revenue was denied them, in particular in the current economic climate. It is the bank's interest to draw this case out as long as they can as it is worth around £2.6 billion per year to the industry.
Any new developments will be posted on the home page under 'bank charges latest' link and in our member emails.