Unauthorised overdraft complaints waiver remains in place

The waiver on application of complaints handling rules when consumers allege unfair unauthorised overdraft handling charges, introduced on 27 July, is working well according to the FSA and will continue to operate across the UK until resolution of a test case brought by the Office of Fair Trading in the High Court. The FSA says that as well as the stay in court proceedings, the three other conditions for the waiver are still being met, namely, the Financial Ombudsman Service (FOS) has also put cases relating to unauthorised overdraft charges on hold; firms covered by the waiver are communicating clearly with consumers and dealing “sympathetically and positively”, as required by the Banking Code, with those also claiming to be in financial difficulty – the FSA has also agreed with firms how small business customers (not covered by the waiver) should be treated to ensure they are not disadvantaged - and the continuation of the waiver is still helpful to the test case; it is expected to be heard in January.