Banks Lose, What Next ?, Doomsday - no more free banking !

The fog still needs to clear, but it has become apparent that the Judge has made some precise and specific assessments of the arguments formulated by the BBA, FSA and FOS. He has arrived at a measured, reasonable conclusion taking into account all the material information presented to him and has arrived at a decision which benefits the consumer. Whilst the judge was clearly persuaded by some of the BBA's arguments, he ultimately felt that the FSA Principles could be used in the determination of PPI complaints. He went further to say that even if the Principles couldn't be used, the Ombudsman could still assess claims on what was a 'fair and reasonable' outcome to all parties involved - essentially, FOS could arrive at any decision it wanted.

Regardless, this all means very little if the banks decide to appeal the High Court decision. They have until 10th May to do so and the chances are very likely. The banks will be able to delay the final decision further and will be at least 8-10 months before the appeal is heard. However, on the other hand, there is an immense amount of pressure on the banks to begin paying compensation again and that media pressure may well be too much for the banks' PR departments to handle. Whatever happens, will happen very soon, and at least we can be sure that this huge bottleneck will be moved forward in some respect.

However, as the decision was released, free banking was set to be under threat that the outcome of the Judicial Review will could cost the banks £4.5billion. Some believe that the losses will be recouped from customers through more expensive banking and even the end of free current accounts.

It is already becoming common for customers in the UK to not have free current accounts and banks presently charge between £3 and £25 a month for account services (like travel insurance and car breakdown cover), guaranteeing them millions of pounds a year.