Berwick v Lloyds TSB Bank Plc [2007] EW Mis 1

Birmingham County Court judgment dismissing claims by two Lloyds TSB Bank customers that overdraft fees were excessive and amounted to unfair and unenforceable penalties.

In one case the judge found that the claim had not been properly made.

In the other, where the customer “presented his case very ably”, the judge found that the particular charges in dispute were made for aspects of the normal operation of the account and overdraft facility, rather than as liquidated payments for breach of contract. On that basis, neither the English common law restrictions on penalties nor the Unfair Terms in Consumer Contracts Regulations 1999 could be invoked.

For further information or advice please contact Franck Latrémolière.

Filed under UK courts.

Reckon LLP is an economics consultancy with expertise in data analysis, economic regulation and competition law.

About Reckon