Money News
A potential landmark case - pitting a bank customer against NatWest, regarding bank charges - has been adjourned by Judge Peter Simpson at the City of London County Court. And without arguments being heard. Simpson ruled that insufficient time had been set aside and referred the case to a future date.
At issue is the legality of penalty charges levied by banks on their customers. Hitherto, banks have settled before any cases have gone to court, fearful that a ruling against them would open the floodgates to thousands of future claims.
However, Tom Brennan, a recently-qualified barrister - and who ran up £2,700 in penalty charges while studying - is the first person to take a bank all the way to court.
Brennan, who is demanding the right to claim exemplary damages, says NatWest offered him £4,000 to settle - but he turned this down to highlight his grievances in court.
Brennan expressed disappointment at the adjournment, claiming it will help NatWest because only six years of charges can be made. Hence, every day that passes is money theoretically being saved by the bank.
The issue of penalty charges has become a hot topic over the last few months as customers have been increasingly emboldened to seek compensation, knowing their banks would prefer to settle any claims out of court.
16 April 2007 © Moneyextra.com
Moneyextra.com recommends you should consider taking independent financial advice before acting on any article. Please contact us for help with your individual circumstances if any assistance is required.