davy_longshanks said:
When u sign a written document (i.e account application forms aka 'small print') u are bound by its terms even if you haven't read any of it. Therefore the banks will soon start winning their cases once they've got wind of what people are up to.
As I understand it the fact that we agreed to the terms and conditions of the account is neither here or there. The banks are being charged under contract law, that any charge levied should not exceed the cost of the breach.
A panel of experts on the BBC Money programme suggested that taking into account all the costs of producing the letter, paper, postage, computer processing time the highest figure they could coem up with was £4.50.
This may be the reason the banks have yet to have their day in court as they would need to show that their charges for sending us the letter etc were fair and reasonable, and may lead them to being forced to disclose these costs - probably not what they would do from a commercial stanpoint. Also if they lost they would be forced to reduce their charges losing them money and open themselves up for more claims.