OFT Test Case
- Supreme Court Decision

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On 25 November 2009 the Supreme Court (formerly the House of Lords) confirmed that the Banks' unarranged overdraft charges are an important part of current account services which the Banks provide to their customers and that the amount of those charges is not assessable for fairness.

We recognise this issue has been of real concern to a large number of our customers and we are pleased that this decision now brings clarity for all parties.

Please refer to the British Bankers' Association website located in our External Links Section for further information.

Frequently Asked Questions

What does this decision by the Supreme Court mean?

The Supreme Court confirmed that the Banks' unarranged overdraft charges are an important part of current account services which the Banks provide to their customers and that the amount of those charges is not assessable for fairness.
The Office of Fair Trading (OFT) has confirmed that it has ended its investigation into this issue.

What does this mean if I have a complaint about unarranged overdraft charges on hold?

During the test case, we agreed with the Financial Services Authority (FSA) and the Financial Ombudsman Service that customer complaints about unarranged overdraft charges related to the test case would remain on hold.

As the Supreme Court decision concludes the test case, the FSA has agreed that these complaints should no longer remain on hold.

We will be writing to customers, or their agents, who have an unarranged overdraft charges complaint on hold to let them know what the Supreme Court judgment means for their complaint. All affected customers will be written to by 19 January 2010.

Will the Bank refund the charges that I have complained about?

The ruling means that those customers who have complained that the charges are unfair or penalties at common law will be unlikely to receive a refund of charges.

What should I do if I am not satisfied with the outcome of the complaint?

You should contact Customer Care Unit at the following address and telephone number:

Customer Care Unit
PO Box 123
92 Ann Street
Belfast
BT1 3AY

Telephone Number: 028 9047 9475

What if my complaint relates to a different issue of fairness, other than the level of the charge, or if there are any other circumstances the Bank should take into account in the way they have considered my complaint e.g. financial hardship?

Customers who believe that their complaint relates to a different issue of fairness, other than the level of the charge, or who believe that there are any other circumstances the Bank should take into account in the way we have considered their complaint should contact Customer Care Unit.

If you are in financial difficulty please contact Customer Care Unit. We may ask you to complete a short questionnaire regarding your financial circumstances. The sooner that you advise the Bank of your concerns the more help we can be.

Contact details for Customer Care Unit are noted above.

What will happen to new customer complaints about unarranged overdraft charges?

As the judgement concludes the test case, the FSA waiver has now ended. This means we will handle complaints through our standard process. We will continue to treat customers sympathetically who are vulnerable and in financial difficulty.

Can I complain to the Financial Ombudsman Service about my bank charges?

You may take your complaint to the Ombudsman once we have fully investigated your complaint and issued our final response.

Before you decide whether or not to do this, you may find it helpful to consider the information about this subject on the Financial Ombudsman website which is available through our External Links section.

What will happen if I have made a claim to the County Court?

If you are not sure what is happening to your case following the Supreme Court decision you should contact the court directly.

What will happen if I have already complained to the Financial Ombudsman Service?

If you have a complaint that was on hold with the Ombudsman during the test case, they have indicated that you should receive a letter shortly explaining how the Supreme Court ruling affects your complaint. Further information can be found on their website which is available through our External Links section.

More information including background to the Test Case

You can contact us through your branch or by calling us on 028 9047 9475.

Alternatively, you can find more information through our External Links section.

First Trust Bank is a trademark of AIB Group (UK) p.l.c. incorporated in Northern Ireland. Registered Office, 4 Queen's Square, Belfast, BT1 3DJ. Registered Number, NI 18800.

First Trust Bank subscribes to the Lending Code and is covered by the Financial Ombudsman Service. Details of the Lending Code are available on request from any First Trust Bank branch or from the Lending Standards Board.

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OFT Test Case - Supreme Court Decision