Tom Brennan; remember the name!
He could well be the man that, if he wins his personal battle, may ensure victory for us all in the fight over bank penalty charges!!
No judge has ever ruled on whether charges of £30 or more to bounce a payment are legal as the banks have always paid up to prevent court action.
But a barrister now believes he can take a bank to court and win and is seeking a key ruling on Friday. He is demanding the right to claim damages on top of a refund and has rejected an offer to settle the action.
Tom Brennan, a customer of NatWest who ran up £2,500 in penalties on an unauthorised overdraft when he was a law student, gave his reasons as to why he is asking the court to decide his case.
"I am arguing for what are called 'exemplary damages'. Where a company acts unlawfully and then takes unlawful profits from a person they should face a substantial level of damages to strip them of those profits," he said.
He shares the view of many of you that the charges levied by banks when people exceed their overdraft limit or a payment is bounced are illegal.
"Consumer protection regulations state clearly that you can't charge a disproportionate level of charges for any breach of contract," he said. "The information I have from my experts it that it will cost £2.50 or thereabouts to bounce a direct debit. The bank charges me £38."
As you already know, big campaigns by consumer groups such as penaltycharges.co.uk and Consumer Action Group have led to tens of thousands of you getting back your bank charges, with more than 2 million form letters have been downloaded from one website alone.
Claim back your penalty charges
In every case the banks eventually pay up (sometimes at the court steps!) so the legality of the charges has never been tested. Mr. Brennan says his approach will force NatWest to defend its actions in court and he has refused an offer they have made him which is well in excess of the penalty charges taken by the bank.
"They've offered me £4,000 but I've rejected it because they keep saying the charges are both fair and lawful but I don't agree," he said.
However, if the court rules against him he could pay a heavy price!
"If I lose and they state that I am acting unreasonably they can ask for their costs," he said. "They are employing senior barristers. It would bankrupt me, and that prevents you being a practising barrister or transferring to be a solicitor. "But that will only happen if the judge awards costs and he may not if he decides I am bringing this for public reasons. This case has a momentum of its own and is too important to walk away."
Tom Brennan's case will be heard on Friday, 13 April in the Mayor's and City of London County Court at Guildhall.
We await the outcome with interest -because it could mean victory for us all!!
November 2008 -Update
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