A legal tussle over bank overdraft charges is to resume at a court hearing in London on Monday.
Newly-qualified barrister Tom Brennan is suing NatWest for aggravated damages over what he claims are "unfair" and unlawful bank charges.
At a previous court hearing, that took place at the end of April, Mr Brennan accused NatWest bank of an "abuse of power" over the fees it charges.
NatWest said Mr Brennan's claim was contrived and should be dismissed.
It added that it believed its fees - £28 per month for each customer overdrawn and £38 for every bounced item - were fair and reasonable.
Aggravated damages
A victory for Mr Brennan could force banks to justify the fees they charge.
It could also open the way for other customers to claim aggravated damages - a form of compensation - in relation to the bank charges issue.
Previously, NatWest has offered to settle Mr Brennan's claim out of court.
But if NatWest wins, it would damage the hopes of thousands of bank customers currently suing their banks over charges, and mark a significant development in the row over fees.
Bank victory
Last week, Lloyds TSB became the first bank to defeat a court challenge by a customer for recovery of charges.
District Judge Cooke, at Birmingham County Court, dismissed a claim for £2,545 from Kevin Berwick.
Mr Berwick argued Lloyds TSB's charges for having an unauthorised overdraft were illegal contractual penalties.
But Judge Cooke decided the bank's charges were in fact legitimate fees for servicing an overdrawn account.
Crucial bank charges case resumes
Posted - 21 May 2007 : 09:49:51
