The Judgement and Basic Accounts

[shortlyTdwarf]

Ok, bear with me if i seem a little dense here. In the judgement today, Justice Smith stated that he had not considered the terms of basic accounts in para. 37. He reiterated this in his conclusion in para. 450, and at various other points throughout the judgement he makes reference to "except basic bank accounts".

Does this mean that the basic account, because it does not offer an overdraft facility, is not included to be assessed for fairness, or is it just me being overly paranoid again?new shocked

I know they don't offer an overdraft on these types of accounts, as I have one, but you can still go overdrawn with their charges and end up hundreds O/D as I am now.

[editorholte]

2 reasons.

A basic account rarely has an overdraft - it's not possible on those accounts.

A basic account is also not a proper current account, and the test case is looking at current accounts.

Those are the simple reasons.

Remember the Banks defended charges on the basis of the 'full package in effect' to varying success. A basic account is basic, does not contain frills. Therefore cannot be considered in the same light as a normal account.

[shortlyTdwarf]

So, basically, if the OFT decide that the banks current account charges are unfair and the cases resume with the banks paying back money from charges, anyone with a basic bank account, and charges on that account, isn't going to be able to get the money back without a long and drawn out fight?

Agreed it is rare but a basic account CAN have an overdraft, I have one on mine to the tune of £750. All in charges that they have taken from the account for going 20p overdrawn for a direct debit. With Abbey's basic account, if you have a credit balance of any amount you can go overdrawn by a maximum of £9.99
i.e. With a balance of £4.50, and withdrawing £10 from a cashpoint (the only way to get money since they won't let you use the branches), you end up £5.50 overdrawn.

And since you can still get charged for a failed D/D or for being overdrawn then it should be included with the rest of the current accounts in the test case.

Looks like I'm going to have to take Abbey all the way to court then.

[Phil_B]

It sounds more like what they are calling a basic account actually isnt in the true sense but is a heavily restricted current account.

Phil

[Helford]

Brief thoughts here.

Since basic accounts, do NOT have a facility to go overdrawn, then the bank's argument that there 'fees' are charges for a service doesn't apply.

Comical Angie will lead you to believe that each bank has someone sat away in a darkened room refering to your records each and every time a payment is to be applied to your account. So if insufficient funds available, they have to make a difficult decision as to whether to pay or not. Bo********s.

If I go to a cashpoint and insufficient funds, no money. If a mandate is presented and no funds, no payment and £39.00 charge. Thanks HBOS. No different, all automated and no letter either as all on paper free banking.

The £39.00 is for what exactly? A couple of nanoseconds of computer time? Unjust enrichment.

Bottom line, charges of any type on basic accounts is obscene and contrary to Government policy on banking for the masses. Halifax will not even let you speak to their staff to carry out any transactions on these accounts.

H

[lexboy]

Another way of looking at shortlyTdwarfs question is:

If basic accounts are not being looked at by OFT or court then WHY are they STAYED???

Thats the big question here guys

[shortlyTdwarf]

That thought occurred to me last night too Lexboy. So if the basic accounts are not included in the test case then the banks have no reason to have a stay granted so that could be used as an extra argument in the application for stay removal.

And I like the idea put forward by Helford that since a basic account cannot have an authorised O/D how can they charge a fee for the "consideration" of allowing one when a D/D payment is presented without sufficient funds. A good argument when we go to court.

[atruckle]

I have a basic account with the Halifax that has been charged around £1500 in the last 4 years. They have written to me to say that all cases are on hold until the outcome of the test case. I have no overdarft on the account as it is purely basic with only a cashpoint card. What should I do now? I havnt persued to court yet but should I? or should I write to them and demand a refund as it is not a current account. Help Please, I have a baby due in 6 weeks and could really use the money.

[kazzie4764]

I have not got as far as Court Applications yet (£100 doesnt sound terrible but it is when you havent got it!) If I can do it soon would I (Could I?)word the application slightly differently to show that I have a basic account not normal current account so technically should not be stayed?
any advice please.

[shortlyTdwarf]

I'm in the process of researching this point further wit hthe OFT and with regards to the waiver and bank t&c's for "basic" accounts. I'll be back with some more definite answers to this later.

atruckle and kazzie, file at court as normal and get the ball rolling. It may be that if my thoughts on this are correct then you can amend your POC's to show the account type and charging errors at a later date.

[cherish_moments]

sorry if i have posted this in the wrong place, help needed plz, i know the banks have lost the case but will they carry on charging our accounts with overdraft fees and charges as i am due to lose another £180-00 again on the 1st on one ac**** and another £40-00 on my other account with the same bank, since Nov 07 i have paid nrly £1500-00 in charges. I have a husband who works i am also recieving benefits i.e due to having cancer, these charges are eating up my benefits and i have put a claim in to Lloydstsb asking for charges to be refunded but had letters back from them saying my claim is on hold until the test case result was known. I would be grateful for your help thank you.

Debz

[kazzie4764]

thanks for that. will keep an eye out for news (hopefully good!).
As usual I would like to say a big thank you to everyone who has been and is involved in this website. people like me would never think we could work our way through all this **** without people like you taking the time to guide (and at times reassure) us.