Banks given overdraft fees waiver
Banks will not have to consider giving refunds to customers who complain about unauthorised overdraft charges for at least another six months, the City watchdog said.
The Financial Services Authority has granted a new waiver enabling banks to ignore the complaints until at least January 26 next year.
The regulator put a waiver in place in July last year following an announcement from the Office of Fair Trading and eight major banks that they would seek a High Court ruling on whether the charges were fair.
The OFT won the first leg of process earlier this year, when the court ruled that the charges came under its jurisdiction, but the banks are appealing against the decision.
The move is bad news for consumers who were hoping to win refunds for the charges.
The FSA's previous waiver was due to run out on July 26, but with no end to the legal process in sight, people face a long wait before they can challenge the banks, and they will be able to continue levying the charges in the meantime.
But the FSA has issued new guidance to banks on identifying and dealing with people who are in financial difficulties, including referring them to a specialist team for advice.
Banks will also still consider complaints lodged by people who are suffering from financial hardship.
It is also requiring firms to keep records on the complaints they receive, and the usual time limitations in which consumers have to lodge a complaint are also being waived.
The regulator is enhancing its monitoring of firms' treatment of consumers while the waiver is in place. The new waiver is being offered to all banks and building societies that signed up to the previous one, accounting for around 98% of the current account market.
