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.

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