Banks planning for refunds after Test Case

[Amethyst]

Evidence that the Banks are putting in place systems in order to refund customers has been made available to us today.

Sources have confirmed one of the major banks have indicated they expect final judgement to be released in the first quarter of 2009.

The evidence suggests that the banks are creating working groups in order to pro-actively refund customers.

They are looking at the accounting rules and methods needed to implement to refund amounts direct to customer accounts.

All customer accounts that are due a refund, as outlined by the judgement and subsequent assessment by the OFT, need to be calculated accurately.

They are also setting systems in order to reconcile payments across the bank and discussing ways to limit reputational damage and loss of funds.

[Bluebell]

Re: Banks planning for refunds after Test Case

That sounds promising!

[Curlyben]

Re: Banks planning for refunds after Test Case

Real question is just how far back they are likely to go ?!

[pinknico]

Re: Banks planning for refunds after Test Case

Does that mean they think they will lose this appeal and that the next appeal will be the final judgement and that will be delivered in the first quarter?
Or am I totaly on the wrong track?! LOL

[TANZARELLI]

Re: Banks planning for refunds after Test Case

Real question is just how far back they are likely to go ?!

Or how far are we prepared to go after them for more to the point, I think as far back as possible as its taken a test case to iron out complexities.

[natweststaffmember]

Re: Banks planning for refunds after Test Case

I suspect it is wishful thinking on the part of the Banks' because the likely predictions for the case is Q3 2009. Q1 is in my opinion way to early a prediction.

[enaid]

Re: Banks planning for refunds after Test Case

Well a positive start imo
Just thinking though about the interest side of it, if they are just to pay back into our accounts the amount we have sent in for our claims. The 8% that we have claimed before when it gets to court stage won't apply as all cases have been stopped before court action.
So do you think a fair interest rate will also be decided to add to the claims, or will this in fact turn out to be a big saving for the banks?

[Amethyst]

Re: Banks planning for refunds after Test Case

The FSA, in the waiver terms, has indicated that they are allowing for some form of compensatory interest...so no I don't think the banks will be allowed to get away without paying any form of interest. Plus if it is decided in court, either in test case or a second test case/group action that the charges were unlawful and should be refunded will cover all refunds for interest regardless of whether they have been entered to court. IMO.

[EXC]

Re: Banks planning for refunds after Test Case

A very significant development.

[Ladidi]

Re: Banks planning for refunds after Test Case

This is good news to hear. Do we have this on good authority that this is actually happening and they are making plans for repayments?

I dont want to be the one to put downer on things, it is just in the past the banks have not been that forthcoming with thier honesty and have done every horrible and mean tactic they could think of the discredit the customer and paint themselves as saints..

[EXC]

Re: Banks planning for refunds after Test Case

This is good news to hear. Do we have this on good authority that this is actually happening and they are making plans for repayments?.

It's on very good authority and I think their is little doubt the banks are actively preparing a refund strategy.

[WendyB]

Re: Banks planning for refunds after Test Case

Do you reckon they will automatically refund charges, even if there has been no request for a refund? There may still be people out there who haven't requested a refund because they're waiting for the outcome of the case, or whatever.

[Budgie]

Re: Banks planning for refunds after Test Case

It's the judgment on the appeal that is expected in the first Qtr 2009.

IMO it would be no surprise if all of the Banks were planning for refunds should things not go their way in the High Court appeal.

I strongly suspect that should the Banks lose the appeal then they will call it a day and not progress matters to a House of Lords appeal. I believe there are too many things going on behind the scenes for the Banks to risk losing any remaining credibility by allowing the House of Lords to make a decision. Bear in mind any House of Lords appeal process is likely to dig a lot further into general matters concerning charging systems and regimes and could therefore have deeper and more damaging implications for the Banks than a semi graceful withdrawl after a High Court appeal decision.

So IMO this news should be treated with cautious optimism.

However bear in mind that if the Banks are planning for refunds then they will also be planning for implementation of new systems and charges which will allow them to recoup any short term losses they might make as a result of the refunds.

Now is the time for anyone who hasn't yet commenced the reclaiming process in respect of their bank charges to get things moving. The word pro-active worries me and IMO I suspect it is quite likely that the Banks will attempt refunds of charges without any interest element being included, especially if people haven't asked for it or commenced a county court claim. IMO refunds of charges should also include an interest element and that should be COMPOUND interest. Everyone should also seriously about opening new accounts and keeping an eye on changes and updates to existing terms and conditions to make sure they are getting the best deal from their existing ( and future ) banking arrangments.

Budgie

[Ladidi]

Re: Banks planning for refunds after Test Case

Wooohooo roll on 2009 Lets hope we all have a good start to the new year.

When we will all be quids in at last

[jax007]

Re: Banks planning for refunds after Test Case

very interesting comments. Hopefully if and when the decision is made to pay out - it doesn't take another couple of years for them to do so!! A very welcome piece of news nonetheless.

Now is the time for anyone who hasn't yet commenced the reclaiming process in respect of their bank charges to get things moving.

Budgie ...
1. does this comment apply to those who have not started ANY claim process at all yet?
2. Or ... does it apply to those of us who have split claims and only the first split is in the court process and stayed (ie we should get the second/third, etc splits in the court system)?
3. Or ... are you suggesting that any claims that have been applied for but not yet put in court process to do so now?

jax