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Test case - Failed Direct Debit charges - UpdateWhat is happening? The Office of Fair Trading (OFT) and a number of UK Banks and Building Societies started a court case on Friday 27 July to decide on the legality of unauthorised overdraft charges, including charges incurred where customers do not have sufficient money in their accounts to meet direct debits and standing orders. This case is being called a test case because the decision will clarify the law in this area and is likely to apply to all current and new claims against current and other investment account providers about such charges. We will continue to post updates on our website to keep customers informed of progress on the test case as this could run for at least a year. What will happen to customer requests for charges to be refunded? Customers who feel they have been asked to pay fees in error should still contact the Society and their request to refund these fees will be handled in our normal way. What will happen to customer complaints about the level, fairness or legality of unauthorised overdraft and failed direct debit and standing order charges? We will not be resolving customer complaints on the level, fairness or legality of these charges while the test case is running. If you do complain about these charges, we will write to tell you that we have received your complaint and that we will record it on your file. When a final decision is reached in the test case, we will contact you as soon as possible to tell you how we will resolve your complaint. We will apply the decision in the court case to all complaints we receive. Why are you allowed to stop dealing with charges for unpaid direct debit and standing order complaints during the test case? We applied to the Financial Services Authority (FSA) for a suspension of the normal timetable for dealing with these complaints. The FSA decided that, in the circumstances, it was appropriate to grant us a suspension of our obligations under the FSA's complaint handling rules while we sought legal certainty on this issue. The suspension is subject to a series of conditions designed to protect a customer's rights. You can read the form of the FSA suspension (direction) here: All customers who have made a written complaint on direct debit/standing order charges but who have not yet had their complaint resolved will receive a letter to explain the position with respect to their complaint. Can I make a court claim for a refund during the test case? Yes, but we will apply to the court to put your case on hold while the test case is running. This is because the issues being raised in customer complaints on these charges are being considered in the test case. Can I complain to the Financial Ombudsman Service about my charges? The Financial Ombudsman Service (FOS) has decided not to review complaints while the test case is running. If you do complain to FOS, you will receive a letter explaining that. What if I have already been made an offer? We will stand by any offer to settle a complaint or court claim that we have already made to our customers. If you have received an offer to settle from us, we will be writing to you again shortly. Our letter will explain that customers have two months to decide whether to refuse our offer and wait for the decision in the test case. If you do choose to refuse an offer, your complaint or claim will be held and recorded by us until there is a final decision in the test case. We will then contact you again as soon as possible to finally resolve your complaint. I have already accepted an offer from you. Will my claim be revisited? If you have accepted a 'full and final settlement', we believe it unlikely you would be awarded a further sum even if the test case indicates a potentially larger amount. However, this does not preclude you from asking for repayment of any new charges incurred if the courts find they are unlawful. What is the current position of the test case The trial start date has been set for the 14 January 2008 How long will the test case take? At this time it is too soon to give any exact timescales for a conclusion to the test case but it could go for more than a year. We have agreed with the OFT and the FSA to conduct the test case in an efficient, prompt and orderly way. Where can I find out more? You can contact us through your branch or by calling us on 0845 1200 100. Alternatively, you can find more information through the following links: The Financial Service Authority The Office of Fair Trading: The Financial Ombudsman Service: |
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