PR Week Echo Columns

Leading high street banks were put on the rack again as the OFT went to the High Court last week to resolve the issue of whether overdraft charges were fair or unfair. The issue was variously presented as either an agreement between the watchdog and eight of the leading lenders (Reuters, 27 July) or a "victory for consumers" (Daily Mail, 26 July). However, such a victory could come at the cost of the end of free banking and new charges to cover the deficit. The downside for customers engaged in current disputes is that the FSA agreed that banks could suspend the handling of claims until the test case is resolved, a situation that according to commentators could "take years".

Within days, however, the FSA issued a rebuke to the banks for making false or misleading statements to customers: "Lies, scams and threats" according to the The Times, 28 July, showing how customers are penalised in a number of ways for daring to take action against their own bank. Consumer champion Which? called it a "victory for common sense" (thisismoney.co.uk, 27 July) but investment website everyinvestor.co.uk pointed out "when it comes to banking, the banks never really lose" (30 July).