Bank test case needed, judge says

A rising number of customers are taking their banks to court

Bank customers reclaiming overdraft charges in court will continue to face a lottery unless a test case is heard, a senior county court judge has said.

Stephen Gerlis, who speaks for all district judges in London, said the number of cases was "unprecedented".

He was speaking after a judge in Hull threatened to strike out 20 claims. Most previous rulings have gone in favour of customers.

The judge said all sides should let a case reach the Court of Appeal.

To date the banks have avoided contesting hearings to avoid a legal precedent being set that could potentially cost them millions.

Judges have therefore tended to automatically find in favour of the claimant without formally setting a precedent.

In the Hull case, District Judge Ian Besford cited a hearing won by Lloyds TSB in Birmingham. The ruling was not binding but other judges are entitled to follow it if they wish.

Judge Gerlis told BBC Radio 4's Money Box programme the legal system currently has no mechanism to quickly resolve the issues emerging from the "mass litigation".

BBC Radio 4's Money Box was broadcast on Saturday, 2 June 2007 at 1204 BST.

The programme was repeated on Sunday, 3 June 2007 at 2102 BST.