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Overdrafts Common Questions And Answers - Citi UK

Overdrafts common questions

Update on overdraft charges test case

On 25 November 2009 the Supreme Court (formerly the House of Lords) issued its judgment in favour of the banks. This concluded the test case procedure and means that unarranged overdraft charges do not amount to penalties at common law and cannot be assessed for fairness by the OFT.

Questions and Answers

As Citi is not involved in the court case, how does it affect Citi customers?

Citi, like all other banks and building societies that offer current accounts, agreed to apply the final decision of the courts to all complaints received from its customers regarding unauthorised overdraft charges.

What does the courts decision mean for customers whose complaints were previously on hold?

During the test case proceedings, the Financial Services Authority (now replaced by the Financial Conduct Authority - FCA) had agreed that complaints relating to unauthorised overdraft charges would remain on hold. As the judgment of the Supreme Court concludes these proceedings, this hold has now lapsed and complaints are being dealt with in accordance with FCA rules.

If you have already made a complaint, there is nothing further for you to do at this stage - we will write to you in due course with the outcome of your complaint.

Can I still complain to the Financial Ombudsman Service (FOS)?

Yes. If you have submitted a complaint to us and you are not happy with our final decision, you have the right to refer your complaint to the Financial Ombudsman Service (FOS). However, before you decide whether or not to take your complaint to the Financial Ombudsman Service, you may find it helpful to consider the information about bank charges complaints on the Financial Ombudsman's website.

What about new complaints?

Any new complaints we receive will now be dealt with in accordance with our standard complaints procedure. However, before you decide whether or not to complain you may find it helpful to consider the information about bank charges complaints on the Financial Ombudsman's website.

We will, of course, continue to deal sympathetically and positively with customers who are in financial difficulties.

If I have already accepted an offer to settle my complaint, how will this be affected by outcome of the test case?

 If you accepted an offer to settle your complaint before the test case process started, the outcome of the test case does not affect the payment you received - this is yours to keep.

Where can I find further information?

A copy of the text of the full Supreme Court judgment can be found at www.supremecourt.gov.uk and further information is available on the following links:

The British Bankers' Association
The Office of Fair Trading
The Financial Ombudsman Service

Please see the Rates and Charges Information for current overdraft fees.

If you have any further queries regarding the overdraft bank charges then please do not hesitate to contact us on 0800 00 55 00 FREE.