Banking—Overdraft charges—Fairness

Supreme Court, Lord Phillips P, Lord Walker, Lady Hale, Lord Mance SCJJ and Lord Neuberger

The terms and the overdraft charges the subject of investigation by the Office of Fair Trading (OFT) fall squarely within reg 6(2)(b) of the Unfair Terms in Consumer Contract Regulations 1999, SI 1999/2083, and consequently are not open to an assessment of fairness, although they may be challenged on other grounds.

Richard Brent (instructed by Ashurst LLP) for Abbey National plc. Jonathan Sumption QC and Andrew Mitchell (instructed by Simmons & Simmons) for Barclays Bank plc. Richard Salter QC and John Odgers (instructed by Addleshaw Goddard LLP) for Clydesdale Bank plc. Robin Dicker QC (instructed by Allen & Overy LLP) for HBOS plc.

Mark Hoskins QC, Daniel Toledano QC and Patrick Goodall (instructed by Freshfields Bruckhaus Deringer LLP) for HSBC Bank plc. Bankim Thanki QC and James Duffy (instructed by Lovells LLP) for Lloyds TSB Bank plc. Geoffrey Vos QC and Sonia Tolaney