The OFT, the Office of Fair Trading, has announced that it will still pursue unfair overdraft charges, regardless of the outcome of an appeal that is currently being heard in the House of Lords. This news has been welcomed by debt advice providers, since many over-committed consumers are amongst those that may be in line for a refund of excessive charges. In certain cases, a large proportion of individual’s debt problems may be made up of bank charges.

There have been two previous legal rulings in favour of the OFT, however a number of banking institutions are now trying to have these overturned. The legal team representing the OFT also confirmed that unfair overdraft charges were not the only thing that concerned them. They are also worried about the way bank account charges are operated in general. There is concern that many customers do not know, or understand, what the charges may be, and that very few people actually read the small print in the terms and conditions.

It’s not just overdraft charges that cause people to get into financial difficulty. Substantial problems can come from running up too much credit card debt, or taking out personal loans with unaffordable repayments. The current economic downturn does not help, with unemployment on the increase and house prices collapsing for many. If bank charges are refunded, to the million or so consumers that have logged claims, it could help many people in their quest to get out of debt.

There are a number of debt help options for consumers with money worries, including debt management programmes, Trust Deeds and IVAs. For larger debt levels, it is recommended that consumers seek IVA advice from a qualified professional, before deciding what to do.