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Supreme Court rules against banking refunds

Today’s judgement handed down from the UK’s Supreme Court is a huge blow for thousands of UK bank customers who were hoping to see their overdraft and bank charges refunded. The Office of Fair Trading (OFT) will no longer be able to continue its investigation into the fairness of charges levied by UK banks on customers who have unauthorised overdrafts. In effect, unless the OFT can now find another way around the ruling, the banks can continue charging substantial fees for customers who go overdrawn without authority using the money raised to subsidise the cost of providing current accounts to their customers who stay in credit.

For thousands who are struggling with the harsh economic climate at present, this judgement will come as a further blow. It will almost certainly leave many of those already saddled with huge debts in an even more precarious position. UK Banks will be allowed to “coin-in” an estimated £2.6bn annually from these charges while almost one million bank customers will be left without hope or redress if their claim is one of those that was “suspended” in July 2007 to allow a test case to be brought before the courts.

Mike Ransom, Head of Business Development at Debt Advisory line said that “this is a disappointing result for thousands of customers who we felt would get positive news today, however they are still in limbo. We are digesting the news and waiting for the OFT announcement in early December as well as feedback from our legal team. We will ensure our customers are fully updated on any developments and will be doing all we can to help them.”

However, for many people around the country their options are now extremely limited. With Christmas and the festive season fast approaching and their debt(s) mounting it may well be that the best option for them is to turn to an agency or organisation that offers debt advice and solutions.

Debt Advisory Line who were voted Debt Management Provider of the Year in both 2008 & 2009 are ready to advise those who are left stunned and saddened by the judgement handed down that pushes their own unsecured personal debt to levels that they can no longer manage effectively on a day to day basis. Take a look at their web site at www.debtadvisoryline.co.uk or alternatively call for free advice on 0800 157 7254.

Most importantly, people should remember not to let their debts spiral out of control – award winning help and solutions are just a phone call or a mouse click away!