Bank Charges – What did the Law Lords Say?

Mouths appear to have dropped open everywhere at the decision of the law lords on bank charges. Certainly it is difficult to understand on what basis the decision was made.First let us be clear what they – appear, anyway – to have said. This is only that the Office of Fair Trading does not have legal power to investigate value for money.

What they have NOT said is whether the charges were, or were not, value for money. Nor whether the charges were fair or unfair.

Indeed, their decision is correctly being described as a technicality. In other words, no matter what the case itself is about, the manner of conducting either the case, or the matters contributing to the case, were incorrect on procedural grounds. At least their opinion is that it is incorrect in that way.

I am not a law lord; evident as it may already be to you, I want it to be clear!

But I have great difficulty in seeing how the Office of Fair Trading is not empowered to investigate value for money. This has been at the heart of trading rules and laws for as long as recorded history.

From the standards for weights and money itself, to the arcane details of contract, value for money has been at the heart of legislative process. How can fairness be expressed without reference to value for money?

I am not even sure this is in keeping with the new Lending Code!

My advice is to move your accounts away from the big banks. Many of the building societies have much more reasonable approaches. And the Co-op Bank may be another good repository for your current account. Certainly you are going to have to spend time and though reading the terms and conditions.

Perhaps we should look to a funny little comment by a correspondent on TV tonight. This was to the effect that the cost to the banks would be billions of pounds, and that was concerning the highest ranks of government.

Perhaps once again we are seeing the unreasoned triumph of the banks over the people. Welcome to the new feudalism.

A very saddened  Joseph Harris – Debt Control Man

Author: Control Your Debt Crisis on Your Own Terms

http:www.controlyourdebtcrisis.co.uk

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2 Responses to “Bank Charges – What did the Law Lords Say?”

  1. MsLuffa Says:

    it’s all very depressing news. You can’t help but feel cheated when you hear it, especially on the same day Alistair Darling declares he’s been pushing billions of pounds, straight from the pay packet of the average joe into the hands of banks.

    Can someone remind me why Western countries are still pedaling capitalism and democracy. We’ve got a minster in charge of business who wasn’t event elected, yet he’s busy having fun with the rich and mighty, even Gadaffi’s son!

  2. debtcontrolman Says:

    It is an incredible mess. The system has been badly distorted since Thatcher, and Brown pretty much delivered the coup de sabre!

    I am increasingly moving to the idea we should do without the banks!

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