Debt problems unlikely to be resolved by court ruling
Debt problems unlikely to be resolved by court ruling
- Wednesday, 25 November 2009UK personal
debt problems are unlikely to be resolved, even if the Supreme Court rules against banks' past charging of unauthorised borrowing.
David Kuo, director of the Motley Fool website, said even if banks were ordered to repay consumers for past charges, they would reclaim that outlay through new means, thus nullifying any benefit to the individual.
As such, those people who were hoping a rebate would ease their economic woes and prevent the need for
debt advice could be set for some disappointment.
Mr Kuo said: "The nature of banks is to make money, not to be a charity. There are various ways in which they can claw back the £4 billion-a-year loss that they are likely to incur as a result of not charging people for going overdrawn."
Which? reports that as many as 12 million people could be affected by the Supreme Court's impending decision.
Around four in ten claims are for £500 or more, the website reveals.

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