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OFT Test Case – Latest News 11 September 2007
OFT spokesman contradicts his own department's legal case

In an astonishing statement to the BBC, a senior official at the OFT has contradicted the whole legal basis of his own department's test case against the banks. The key feature of the OFT's case against the banks was that the charges imposed by banks for exceeding overdraft limits were for breaches of contract and were, therefore, subject to fairness tests in The Unfair Terms in Consumer Contracts Regulations 1999.

Now, Cavendish Elithorne of the OFT has said, "In most instances we would probably agree with the banks' arguments that these are not penalties as defined in common law". In saying this, he has essentially said that he would not expect to win the argument in the OFT's particulars of claim.

He also says that the OFT might drop the test case and reach a compromise deal with the banks. Spookily, this is exactly what Bob the Bankbuster thought might happen – see my words on the page entitled OFT test case and my predictions of what might happen.

Now we know what we always suspected: the OFT has no stomach for a fight with the banks. The money and lobbying power of the Banks has been effective in neutering the OFT. I bet British Airways wish they had had as much power as the banks.

For full report on this latest development, see BBC website

Published and promoted by Bob Egerton, TR2 4RS