A frugal life is an easy life!

The Office of Fair Trading (OFT) have dropped their challenge to the banks, regarding their overdraft fees.

I am personally disgusted at this!

The new supreme court ruled in favour of the banks (against all expectations and two previous rulings by the House of Lords and the Appeal court) precisely 4 weeks before the government announced the pre-budget report, which levys a "bonus tax" on the banks - which coincidentally, will raise close to the amount the banks would have had to pay back had they lost this case in the Supreme court!

The OFT have stated that they could have continued the action, using different legislation, but have decided to drop the action, which will in part, mean that thousands of people who have claims waiting with banks and the courts, will now lose those claims.
The OFT advise that "there might be a chance of winning by using the consumer credit act" - well thanks for nothing!

In my view, it is a stitch up.

• The OFT win their case in the House of Lords
• The banks appeal, but lose in the appeal courts
• The government launch a new Supreme court
• The Supreme court - against all expectations - rules against the OFT and denies any further appeals, both in UK courts and the European courts
• The chancellor announces the pre budget report, which levys a new bonus tax, upon bank bonuses, which will raise close to the same amount that would have been payable had the banks lost the case to the OFT.
• The OFT give up their action to enforce the law for people.

The law on any charges levied against a customer or business is very clear and has a clear legal precedent:

If a charge does not reflect ACTUAL COST to the company imposing it, it is deemed to be a "penalty charge" - as such penalty charges are unenforceable under common law in England and Wales.

The issue of charges with the banks really is that simple!
Prove that an amount of charge that you are billing a customer/business for, was caused by them and is the actual loss you suffered, or lose the case and refund the charge!

The question now is, why do we even have an Office of Fair Trading and the millions of taxpayer's money it spends every year, if it cannot decide on what is fair?
Clearly the OFT are nothing more than a toothless quango, whilst the people of the UK keep on being stung by unscrupulous business practices from big business!