Many students at Kingston are now unable to claim back bank charges following a Supreme Court ruling last Wednesday.

Campaigners were stunned at the court’s decision to rule against the Office of Fair Trading. It judged that charges for unauthorised bank use were part of the price customers paid to bank their money with the provider.

Biomedical science student Hashim Ali has paid over £400 in unauthorised charges over the past four years. He said: “How about next time I go over the banks can send me the paperwork and I’ll do it for free, how about that.”

Mr Ali contacted Halifax in August to appeal the charges but like millions of customers he had to postpone his claim, until a decision had been made in this case.

As the Financial Services Authority has now lifted the ban on handling claims, it is likely that many customers will have their claims rejected outright, leaving customers like Hashim unable to claim their money back.  

High bank charges are incurred when an unauthorised overdraft is used or when a cheque bounces, these charges can be as high as £30 for going over by a few pence. Ali concedes that it is fair to charge a small administration fee but has said: “To charge an exorbitant fee of £25 to £30 pounds is just ridiculous and unfair.

Kingston student Laurence Angeles said: “I have gone into my bank before and asked why the transaction went through if I didn’t have the money. It is just a ploy to make money.”

Evidence from an Office of Fair Trading report highlights that banks earn around a third of their personal current account revenue from unarranged overdraft charges.

Lloyds TSB who own Halifax Bank of Scotland said they would not comment on the decision and how it would affect students, but it has been reported that only those who can claim severe financial hardship may have a chance at getting their money back.

In a press release following the decision the Office of Fair Trading have stated: “ The OFT will now consider the detail of this judgment before it makes a decision on whether or not to continue its investigation into unarranged overdraft charging terms.”

The OFT will be discussing the matter with the government, banks and consumer groups and will make an announcement this month as to whether it will appeal the Supreme Court decision.