The banks have taken it that they have a given right to up charges irrespective of inflation and the cost involved in executing the work.
To have paid out of court some £1 bllion must be telling us something and it is interesting that not all banks are in this syndicate.
What needs to be asked is at what point do we stop cow towing to banks and treat them like any other business that abuses its clients.
If the banks win then Labour will have signed their own death knell.
The electorate will see them as gutless and only capable of caving into large companies at the expense of the rest of the country.
Lets not forget Power companies and Endowment policies, Pension fund jokes, Payment protection schemes, Petrol companies, and now Northern Rock.
This no longer a situation of regulation this is now a political problem with a government utterly incompetant and incapable of doing anything save trying to spin out of every issue but actually doing nothing in the end.

Robert D Marshall, London, UK

“If the banks are forced to reduce their charges for unauthorised overdrafts, then prices may well go up elsewhere. This risks increased charges for people who remain in credit and possibly the withdrawal of banking services from unprofitable poorer customers.”

The good news about this for some of us is that it might lead banks to view the ordinary current account as a source of profit, rather than as a loss-leader. That in turn could lead to genuine competition for retail customers and even an end to the policy of closing branches. Banks would still want to sell their services to poorer customers (they are not shy of trying to sell them loans or insurance), but those customers would have to pay more.

Frank Upton, Solihull,

I understand your point Anthony, and as someone who has also works within the limits of my bank's terms and conditions I would also not exactly welcome the iomplementation of "other" charges to supplement the possible loss of unauthorised overdraft charges.

However, the charges that are levied are excessive and unwarranted. The banks will have a hard time showing that it really costs them as much as they charge when someone goes overdrawn, particularly when in the majority of circumstances, this is rectified within a couple of days.

The reality is that these charges affect the poorer customers in the first place and place them under even more pressure to control what are already very tight budget restrictions. I am not in favour of abolition, but a bit of common sense by the banks would have prevented this whole situation.

Chris, London,

Even if an account holder, knowingly goes overdrawn, The Banking code all banks subscribe too, states that the Bank should only charge the customer its liquidated loses, I do not believe it costs Banks £38, to send an automated letter. Banks in other countries, including Ireland charge £4.50 for a bounced Cheque or Direct debit. Yes the Bank has a right to charge for extra work, but it must be fair.

The Chairman of an money institition who charges for arrangement fee for even 1 day., whereby you go into over draft should be taken to the hight court and sentenced for fraud, as they do it without consulting the named person, ie:- 10p phone call, WAKE UP BRITAIN, THERE IS NO EXCUSE , NO wonder overseas call this country TREASURE ISLAND, THE british are too laid back.

I work abroad and frequently open accounts in other countries.

There are NO charges to go O/D, No charges to open an Account, No Charges for D/Ds or S/Os. Very few at all.

They just Invest your Money.

paul, newbury, UK

Bank charges are a perfect example of robbing the poor to subsidise the rich.
I'm cynical. I dont believe those judges will want to start paying for their bank accounts.
Far better to have the low earners pay for those accounts for them.

Phill, The Wirral, England

Why so many lawyers? - surely this is absolute evidence that the Banks case is so very weak.

Robin, London,

The case may have been moved to a "larger" venue, but there will only be 11 spaces for all of the press and the public. So if your correspondent wishes to sit in on the case, he had better get there early!

Bob Egerton, Truro,

it seems to me that those who incur bank charges has breached the banks conditions of use. The penalty charges as the name implies, will include a punitive charge over and above the actual costs. I think the banks will argue along these lines and they will have a case.
I think the banks will win. I hope so, as I dont see why we who do not go into the red must pay for those who do if bank charges are imposed on all of us as a result of this case.

anthony wong, london, uk