Judge allows appeal over bank charges

By Jennifer Hill, Personal Finance Correspondent

LONDON (Reuters) - Bank customers could have to wait years to find out whether current account charges are deemed "unfair" after a judge gave Britain's banks permission to appeal a ruling against them.

Five weeks ago, the High Court ruled in favour of the Office of Fair Trading (OFT), allowing the consumer affairs watchdog to press ahead with an investigation into whether banks can legally charge customers who slip into the red without prior agreement or who write a cheque that bounces.

That potentially paved the way for current account holders to reclaim billions of pounds in fees.

But at a case management meeting to set the timetable for the next steps on Thursday, Mr Justice Andrew Smith indicated that he would allow the banks to appeal at least part of his ruling, which relates to the rights of customers to sue banks.

Other aspects of his initial ruling are still being considered.

Peter Vicary-Smith, chief executive of consumer group Which?, said the move was a "real kick in the teeth for consumers as it just drags out the whole process".

"It'll be at least another year before people start to get their money back, during which time the banks will hit us with up to 3.5 billion pounds in overdraft charges," he said.

"The banks should do the right thing now, throw in the towel and start reimbursing the customers they've been overcharging all this time."