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Judge to strike out bank claims | Judge to strike out bank claims |
(about 2 hours later) | |
A county court judge has threatened to strike out claims by 20 bank customers who are suing for the refund of overdraft charges. | |
District Judge Ian Besford, in Hull, said the claimants were unlikely to succeed because Lloyds TSB had won a similar case recently in Birmingham. | |
It is the first time a judge in the UK has quoted this case as a precedent. | It is the first time a judge in the UK has quoted this case as a precedent. |
However, it leaves the legal position unclear as other judges have usually found in favour of claimants. | |
No prospect | No prospect |
Several people suing Lloyds TSB, Barclays and HSBC have contacted the BBC about Judge Besford's decision. | Several people suing Lloyds TSB, Barclays and HSBC have contacted the BBC about Judge Besford's decision. |
His order states that he plans to strike out their claims on 4 July, as they disclose "no reasonable prospect of success in the light of the recent decision" at Birmingham county court. | His order states that he plans to strike out their claims on 4 July, as they disclose "no reasonable prospect of success in the light of the recent decision" at Birmingham county court. |
READ THE JUDGEMENT Approved judgement [424KB] Most computers will open this document automatically, but you may need Adobe Reader Download the reader here Was victory an accident? | READ THE JUDGEMENT Approved judgement [424KB] Most computers will open this document automatically, but you may need Adobe Reader Download the reader here Was victory an accident? |
In that decision, revealed exclusively by the BBC news website, Kevin Berwick lost a claim for £2,545 against Lloyds TSB. | In that decision, revealed exclusively by the BBC news website, Kevin Berwick lost a claim for £2,545 against Lloyds TSB. |
It was the first time that a judge had examined the legal issues involved. | It was the first time that a judge had examined the legal issues involved. |
Normally when claims get to court, judges find in favour of the claimants because the banks fail to turn up to defend themselves, and thus the legal issues go untested. | Normally when claims get to court, judges find in favour of the claimants because the banks fail to turn up to defend themselves, and thus the legal issues go untested. |
Marc Gander, a spokesman for bank charges campaign the Consumer Action Group, said: | Marc Gander, a spokesman for bank charges campaign the Consumer Action Group, said: |
"Kevin Berwick lost in his case in Birmingham because he didn't supply enough evidence. | "Kevin Berwick lost in his case in Birmingham because he didn't supply enough evidence. |
"This judge in Hull seems to be striking out the claims before he has even seen the detailed evidence of each claimant." | "This judge in Hull seems to be striking out the claims before he has even seen the detailed evidence of each claimant." |
Judicial decision | Judicial decision |
Judge Cooke in Birmingham took the view that the bank's charges were legitimate fees for a package of services and not penalty charges that might be deemed illegally high. | Judge Cooke in Birmingham took the view that the bank's charges were legitimate fees for a package of services and not penalty charges that might be deemed illegally high. |
It is entirely up to each judge to decide for himself if the Birmingham judgement is an interpretation of the law he agrees with Barry Hunter, Kingston-upon-Hull court | It is entirely up to each judge to decide for himself if the Birmingham judgement is an interpretation of the law he agrees with Barry Hunter, Kingston-upon-Hull court |
Although his ruling did not set a formal precedent, other judges are entitled to read it and decide, if they wish, that they agree with his arguments. | Although his ruling did not set a formal precedent, other judges are entitled to read it and decide, if they wish, that they agree with his arguments. |
"It is a judicial decision," explained Barry Hunter - Kingston-upon-Hull court's manager, said of the latest order. | "It is a judicial decision," explained Barry Hunter - Kingston-upon-Hull court's manager, said of the latest order. |
"It is entirely up to each judge to decide for himself if the Birmingham judgement is an interpretation of the law he agrees with," he said. | "It is entirely up to each judge to decide for himself if the Birmingham judgement is an interpretation of the law he agrees with," he said. |
But one of the 20 Hull claimants, Mark Freer, queried Judge Besford's decision. | But one of the 20 Hull claimants, Mark Freer, queried Judge Besford's decision. |
"Why not look at the judges who throw out the cases?" he asked. | "Why not look at the judges who throw out the cases?" he asked. |
"Some judges complain the banks don't turn up, or settle just before." | "Some judges complain the banks don't turn up, or settle just before." |
Strange | Strange |
The inconsistency that is emerging in the way the judicial system is dealing with these cases suggests that the success of a claim may soon depend on which court, or even which individual judge, hears the case. | The inconsistency that is emerging in the way the judicial system is dealing with these cases suggests that the success of a claim may soon depend on which court, or even which individual judge, hears the case. |
Part of Judge Besford's order | Part of Judge Besford's order |
Another recent claimant in Hull, Nicole Haslam, said: "I have recently obtained £5,000 in charges from HSBC and my husband is in the process of taking action to recover around £3,000." | Another recent claimant in Hull, Nicole Haslam, said: "I have recently obtained £5,000 in charges from HSBC and my husband is in the process of taking action to recover around £3,000." |
However her husband has now been told that his case may now be struck out next month. | However her husband has now been told that his case may now be struck out next month. |
The claimants in Hull have seven days in which to object. | The claimants in Hull have seven days in which to object. |
If their objections are unsuccessful they can then appeal to the designated civil judge for the Humber area, Judge Thorn QC. | If their objections are unsuccessful they can then appeal to the designated civil judge for the Humber area, Judge Thorn QC. |
Another of the claimants, Dave Jeffrey, said he planned to continue with his claim for £1,294. | Another of the claimants, Dave Jeffrey, said he planned to continue with his claim for £1,294. |
"It is a bit strange because the Birmingham case was not a precedent," he said. | "It is a bit strange because the Birmingham case was not a precedent," he said. |
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