Office of Fair Trading v Abbey National plc
[2009] UKSC 6
Ratio Decidendi
Bank overdraft charges are part of the price or remuneration for banking services and therefore fall within the exclusion from the unfairness assessment under the Unfair Terms in Consumer Contracts Regulations 1999 (now Consumer Rights Act 2015).
Facts
The OFT challenged unauthorised overdraft charges as unfair contract terms. Banks argued the charges were part of the price of services and exempt from assessment.
Judgment Summary
The Supreme Court held that overdraft charges formed part of the price or remuneration for the package of banking services. As such, they could not be assessed for fairness provided they were in plain and intelligible language.
Key Quotes
"The charges are part of the price of the banking services and fall within the exclusion."
— Lord Walker
Subsequent Treatment
Applied in subsequent consumer contract unfairness cases.