News In Focus
22 February 2010
Bank charges case to go to proof
Proof in a bank customer's claim for repayment of allegedly excessive charges has been set for June in a case in Glasgow Sheriff Court, following a sheriff's ruling on Friday.
Sheriff John Baird allowed the pursuer in Sharp v Bank of Scotland to amend her case in the light of the ruling last November by the UK Supreme Court, which rejected the test case against the banks that was supported by the Office of Fair Trading.
The bank had opposed the move, arguing it would be "improper" to allow the claim to be amended in this way. The amendments, in a case brought by Govan Law Centre, now attack the charges as excessive under section 140A of the Consumer Credit Act.
Under that provision the onus of showing that the charges are not excessive is on the bank.
Mike Dailly, principal solicitor at Govan Law Centre said: “Over the last few weeks, UK banks have been telling one million customers that there were now no grounds to reclaim bank charges, standing November's Supreme Court decision. Of course, the Supreme Court itself had explained that charges could still be challenged under different legal grounds, and that is what Sheriff Baird has permitted our client to do today at Glasgow Sheriff Court".
Proof in the case has been set for 11 June.