BBA 'pleased' with clarity on bank charge issue

The British Bankers’ Association (BAA) has welcomed today’s decision on unarranged overdraft charges.

It has been ruled by the Supreme Court that such fees are a key part of current account services and the amount charged by financial institutions cannot be assessed for fairness.

BBA said it was pleased that the issue has been clarified, as it has been causing concern for a large number of market participants.

It stated that the banks will cooperate with regulators to make sure any outstanding complaints in regard to such charges are brought to a rapid conclusion.

The group also avowed that it would continue to work with the Office of Fair Trading, which is conducting ongoing market research into the issue.

In other news, it was revealed earlier this week by BBA that house purchase and mortgage lending approvals increased last month.

Meanwhile, lending to non-financial corporates dropped and consumer credit was described as weak.ADNFCR-2318-ID-19479750-ADNFCR