TSB Win Landmark Court Case

Lloyds TSB Win Landmark Court Case

Monday 21st May 2007

Lloyds TSB became the first British Bank last week to win a court-case regarding bank charges. Kevin Berwick claimed that charges for having an unauthorised overdraft were illegal contractual penalties and was suing the bank for damages of £2,545.

District Judge Cooke ruled however that the charges incurred by Mr Berwick were legitimate fees for services provided by the bank.

The court ruling will come as a blow to many consumers who are currently in the process of claiming back bank charges they feel were unfairly imposed by their banks.

This is the first case of its kind to be brought before a judge with many banks choosing to settle claims out of court and whilst the judgement from the District Court is not binding in any other court – we may see this case set precedence for similar cases to come.