Banks face repaying billions in fees

By SIMON WATKINS FOR THE MAIL ON SUNDAY
Updated: 09:35 EST, 22 November 2009

The banks could this week face a multi-billion pound bill when the Supreme Court delivers its verdict on the long-running row over unauthorised overdraft charges.

Crunch: Banks may have to repay billions

The case will decide whether the Office of Fair Trading can rule if bank overdraft charges are fair.

If the OFT wins, the banks face huge payouts to customers whom the regulator argues were overcharged.

About 15,000 cases with the Financial Ombudsman and thousands more in county courts have been frozen pending Wednesday's ruling, which will be broadcast live on television.

In the first half of 2007, just before all cases were put on hold, the banks paid out a total of £400m in refunds to customers.

The OFT has already won the initial court case and an appeal.