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In recent years unauthorised overdraft charges have been particularly damaging to small businesses as many owners run their companies using personal accounts and overdraft facilities. The general consensus has been that the Court will find against the banks, however, no word regarding compensations has yet been heard.

Despite this it appears that the case could be drawn out further as the Office of Fair Trading (OFT) will still have to determine what would be deemed as a fair charge for unauthorised overdraft use.

Although it is unclear whether or not the banks will pursue this case further should the Supreme Court rule against them, Santander have recently launched a bank account with no overdraft fees. This suggests that they are expecting to lose the case despite denying that this is the reason for launching the new account. However, Santander has said that customers found to be going overdrawn will be charged 12.9% interest.

According to the consumer group Which, it is believed that as a consequence of the expected Supreme Court’s decision that bank charges claims will soar. Therefore people making claims are being advised to do so as quickly as possible so that they can get to the front of the queue for any impending payouts.