The case which will decide whether or not bank charges are unfairly high will start before the end of the year, a judge has said.
A further High Court hearing to decide on the fairness of banks' penalty charges will go ahead before the end of 2008, Mr Justice Andrew Smith has said.
The same judge ruled last month that the penalty fees came under the jurisdiction of the Office of Fair Trading (OFT): a verdict that has been widely seen as a victory for consumers who wish to reclaim their charges, levied by banks for offences such as exceeding overdraft limits.
However, the seven UK banks and one building society who are contesting the case were also given the right to appeal this verdict earlier this week. This means that, if the appeal succeeds, the OFT will be powerless over refunding the charges whatever happens.
At the upcoming High Court case on the legality of the fees, the OFT is to present the results of its investigation on the topic, which has been under way since April 2007. Mr Justice Smith's new timeline suggests that he wants this process to be completed sooner rather than later.
Speaking to the BBC, Chris Warner at consumer group Which? said: "The judge has indicated he wants the OFT's investigation to be wrapped up quickly, and that is a very positive move for consumers waiting in the wings. But the banks are appealing and it will be some time before a judgement is issued in that hearing and so consumers are still some way away from getting their money back."
Banks currently earn around £3.5 billion a year from penalty fees.
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