Tories want bank charges compensation repaid ‘quickly and fairly’
Posted on 27. Aug, 2009 by Guest Dino in banking, lifestyle
A decision regarding the fairness of bank charges might still be weeks away, but customers who have been overcharged by banks should be compensated “quickly and fairly” says Conservative party leader, David Cameron in an Independent online article.
The case, which is currently undergoing discussion in the House of Lords could cost British banks billions of pounds should the Lords rule against them and Mr Cameron is believed to be considering a plan to introduce automatic payback of charges should the Tories win the general election. The Tory leader has already instructed the shadow Chancellor George Osborne to investigate the possibility of automatic compensation which would do away with the need for consumers having to raise a claim.
In an email sent in response to Martin Lewis of website MoneySavingExpert.com, Mr Cameron said:
“Once the legal issues have been resolved I agree with you that bank customers must be compensated quickly and fairly for any unfair charges that they have had to pay. So I’ve asked my Shadow Treasury Team to look at your suggestion that banks should pay money back automatically if the courts do rule that the charges are unfair.”
The full wording of Mr Cameron’s response can be found here.
The Tories’ promise could see the amount of compensation being paid back by banks far surpass the original figures claims Mr Lewis. Should automatic compensation occur, the banks could be forced to pay back as much as £10billion or even more; whereas if consumers were to continue to claim against their banks, the likely payout would be much less – perhaps £2-3billion.
The Lords’ verdict is expected sometime in Autumn.
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