The claimant appealed a finding that it had not been overcharged interest by the respondent. The account was overdrawn. They claimed that on each occasion when a cheque was paid into the account, the bank had charged a day’s extra interest before crediting it. The bank would receive value for the cheque on one day, but adjust the balance for interest purposes only on the day after. The facility letter did not set out a right to do this.
Held: The customer had impliedly agreed to the bank’s standard terms including as to the date on which credits would affect the balance. Those terms were negotiable and applied unless they were unreasonable or ‘extortionate or contrary to all approved banking practice’.
Judges:
Lord Justice Pill
Citations:
[2002] EWCA Civ 460
Links:
Jurisdiction:
England and Wales
Cited by:
Cited – Office of Fair Trading v Abbey National Plc and seven Others ComC 24-Apr-2008
The Office sought a declaration that the respondent and other banks were subject to the provisions of the Regulations in their imposition of bank charges to customer accounts, and in particular as to the imposition of penalties or charges for the . .
Lists of cited by and citing cases may be incomplete.
Banking
Updated: 02 September 2022; Ref: scu.170148