High Court ruling on bank charges

The High Court has handed down judgment in the first stage of the OFT's challenge to the legality and fairness of bank charges. Mr Justice Andrew Smith found that bank charges are not exempt from an assessment of fairness under the Unfair Terms in Consumer Contract Regulations 1999.

But, importantly for banks, it was decided that bank charges could not amount to a penalty under common law.

The Test Case will continue, with the next hearing listed for the end of May 2008.

For all you need to know on the judgment, read Wragge & Co's expert analysis.