Reaction to bank charges decision

More cases will be heard before any pay-out for claimants

The UK's biggest banks have lost a test case about overdraft charges.

A judge has decided that the Office of Fair Trading (OFT) can apply consumer contract regulations to decide if bank overdraft charges are fair or not.

But Mr Justice Andrew Smith said the judgement did not necessarily mean the charges were unfair.

Here is some of the reaction to Thursday's decision:

ANGELA KNIGHT: BRITISH BANKERS' ASSOCIATION

"The judgement is complex and the banks are currently considering its implications.

"This case has never been quite as simple as has been described.

"We need to take what the judge has said very carefully and not jump to conclusions. This is the start of a process.

"We will seek to get to a resolution as quickly as is possible."

OFFICE OF FAIR TRADING

"This is an important early milestone for the OFT and our investigation into this area of high consumer interest.

"We are now analysing the implications of the judgement for our overall investigation into the fairness of the terms. There may need to be further hearings to determine any outstanding issues arising from the judgement.

"We are continuing our investigation into the fairness of these terms and will consider our position after reviewing the detail of this judgement."

CHRIS WARNER: LAWYER FOR WHICH?

"This is a great day for consumers and a very favourable decision.

"The judge has essentially said that all overdraft charges are not valid fees for a service, which means that the OFT now has a free rein to judge whether the charges are in fact unfair.

"The banks and the OFT will be looking at the judgement to see if there are grounds for appeal and almost certainly there will be one.

TOM BRENNAN: WHO LOST AN ATTEMPT TO SUE NATWEST

"It is quite a good victory but obviously this is not the end of it, if there are appeals after this.

"The fairness issue does not apply in this case. There will be separate proceedings on that.

"I can't see this stopping short of the House of Lords, the values involved are too great and the numbers of people are too large."

MARTIN LEWIS: MONEYSAVINGEXPERT.COM

"I think this is a real vindication for bank charge reclaiming.

Ruling could lead to 'massive vindication' for campaigners

"We have said all along that these are unfair contractual terms. The banks have said 'you do not know what you are talking about', well now we do.

"This is not niche finance, this is big stuff.

"We are hopeful that the OFT will now think the charges are unfair."

CARL BELGROVE: NATIONAL CONSUMER ASSOCIATION

"This is a welcome and long-awaited step towards fairer, more upfront banking charges.

"The ruling is a victory for common sense and paves the way for a better deal for consumers.

"But before that can happen the OFT needs to make clear what it regards as 'fair'. We urge them to move swiftly to clarify this point.

"We also urge the banks to think twice before abandoning free banking for customers with positive balances in the wake of this decision. The OFT spotlight is already searching out how competitive the market for bank current accounts really is.

"Banks should be wary of taking hasty action that could unfairly disadvantage some of their least well-off customers."

MARC GANDER: CONSUMER ACTION GROUP

"We feel thoroughly vindicated, but what is dismaying is that all the stays [cases on hold] are remaining in place and the banks are free to go on charging despite the real uncertainty about the fairness of their charges."