Bank charges case goes to court

Tom Brennan is taking his bank to court

An attempt to get NatWest bank to justify its unauthorised overdraft fees was adjourned after a day of arguments.

A barrister, Tom Brennan, is claiming damages at the Mayor's and City of London County Court from the bank for levying fees he says were unlawful.

He was charged a total of £2,500 by NatWest for unauthorised overdrafts when he was a law student.

A previous hearing was postponed when the judge said that not enough time had been set aside to hear the case.

A decision on the court case is expected later this week.

Offer

In an attempt to settle the case, NatWest has refunded Mr Brennan's penalty charges and offered to pay him £1,500 extra if he does not take the case to court.

Mr Brennan has refused to accept this and is pursuing his claim for exemplary and aggravated damages to punish the bank for what he claims was the unlawful seizure of his money, causing him economic harm.

Monday's hearing will establish whether Mr Brennan does, in fact, have the right to claim these extra damages.

Ultimately, the bank could be forced to justify its fees in open court.

These fees can be as high as £38 for exceeding an agreed overdraft limit.

Last week, the Office of Fair Trading said it would review the UK current account market to establish whether the industry's claim that it offers free banking is in fact correct.