'Unfair' bank charges challenged

Mr Taylor would like a quick ruling from the Office of Fair Trading

A Devon man is considering applying for a judicial review over the issue of bank and credit card charges.

Stephen Hone from Plymouth says the charges are punitive when they should only cover additional bank costs.

Mr Hone runs a website offering free advice to other bank customers in the same position.

Cornish MP Matthew Taylor is to raise the case of a couple from Saltash in parliament this week who have been helped by Mr Hone.

Gordon and Karen Blair from Saltash in Cornwall successfully fought to get thousands of pounds in bank charges returned to them.

Marriage troubles

Mr Hone, a Plymouth law student who had already challenged charges imposed on him, said he wanted to share his knowledge with others in the same position.

The couple said it took them more than four years to escape from a financial trap they believe was caused by unfair bank charges.

Mr Blair also blamed the money worries for difficulties in the couple's marriage.

Mr Taylor would like the Office of Fair Trading to rule quickly rule on whether banks are breaking the law when they levy some charges against customers.

'Fact-finding exercise'

Gordon Blair says their money worries had a terrible effect on his relationship with his wife Karen.

Currently banks can only charge customers what extra costs they incur if someone goes overdrawn without permission. They should not make a profit on the charges.

In a statement, the Office of Fair Trading (OFT) said it was looking into the matter.

In a statement it said: "This fact-finding exercise is expected to take between three to six months, at which stage the OFT will consider whether a further detailed investigation of the fairness of individual bank default charges is needed."