Lloyds TSB has become the first bank to win a court case after being sued by a customer for imposing supposedly unfair overdraft penalty charges. District Judge Cook, at Birmingham County Court, dismissed a claim for £2,545 from Kevin Berwick.
Mr Berwick argued Lloyds TSB's charges for having an unauthorised overdraft were illegal contractual penalties. But Judge Cook decided the bank's charges were in fact legitimate fees for servicing an overdrawn account. As such, the judge said they were legal.