Gordon Brown urges quick settlement to bank charges case

Gordon Brown stepped into the debate on overdraft charges today, suggesting that the banks should seek a settlement “without further delay.”

In a letter to Martin Lewis, editor of MoneySavingExpert, Mr Brown suggested that “a negotiated solution could be in everyone’s best interests,” giving hope to campaigners that the long-running legal battle may soon come to an end.

The major banks are currently fighting a case against the Office of Fair Trading, which claims that charges of up to £39 for bounced cheques or returned direct debits are unfair and illegal.

The case will be one of the first to be heard by the new Supreme Court when it is formally launched next month. Although it is widely thought that the banks will lose the case, it is likely to be many months before customers see any money.

A negotiated settlement would mean that consumers could claim refunds quickly. Several major banks have already given assurances that refunds will be paid automatically in the event that they lose the case.