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The OFT claims the charges are illegal under the Unfair Terms in Consumer Contracts Regulation 1999.
Mr Justice Andrew Smith agreed with the OFT that charges were covered under the Unfair Terms in Consumer Contracts Regulation 1999.
Nowadays, such terms can be challenged on the basis that they're unfair and one-sided under the Unfair Terms in Consumer Contract Regulations 1999.
The OFT is asking to be allowed to challenge the banks' penalty charges under the Unfair Terms in Consumer Contracts Regulation of 1999.
While consumers will not receive refunds under the Unfair Terms in Consumer Contracts Regulations, some consumer bodies argue there may yet be scope under the Consumer Credit Act, which was amended in 2006.
The ongoing furore over bank charges was reignited earlier this month with the decision by the supreme court that unarranged overdraft charges were not assessable under the Unfair Terms in Consumer Contract Regulations.
The ruling on the case between the Office of Fair Trading OFTT) and seven banks and one building society was to determine whether the fees charged for unauthorised overdrafts could be tested under the Unfair Terms in Consumer Contracts Regulations 1999.
Michael Green, whose law firm CaseHub is behind the group action, has obtained legal opinions from senior barristers that Foxtons' fees – such as a £420 adminstration charge, £300 for name changes and £165 for checking out a property – could be illegal under the Unfair Terms in Consumer Contracts Regulations 1999, and its successor the 2015 Consumer Rights Act.
In April 2007, the Financial Services Authority halted thousands of separate legal claims for refunds against the banks to allow for a definitive ruling on the legality of the charges under the 1999 Unfair Terms in Consumer Contracts Regulations (UTCCR).
Mr Justice Andrew Smith agreed with the OFT that charges were covered under rules governing the Unfair Terms in Consumer Contracts Regulation 1999.
But the Supreme Court said Wednesday that the charges imposed by banks formed part of their fees for current account services and should not be reviewed under British regulations on unfair terms in consumer contracts.
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