Customer takes on bank in landmark legal battle over 'rip-off' fees

Tom Brennan said "unlawful" fees levied on him by NatWest left him unable even to buy himself a single pint of beer on his 30th birthday.

The recently qualified barrister is seeking damages against the high street bank at the Mayor's and City of London County Court in relation to money that was taken from his account in unauthorised overdraft charges.

NatWest is seeking to get the claims struck out. Mr Brennan said that, in taking around £2,500 in fees, the bank had acted unlawfully.

He said: "It is a fact of life that we can't always keep to financial commitments. But that doesn't justify any bank acting unlawfully in charging disproportionate fees."

He believes that charges of up to £38 for going into unauthorised overdraft or bouncing payments is unlawful in that it does not represent the true cost to current account providers.

Campaigners have stated that the actual cost is as little as £2.50. Alongside full reimbursement of the charges, Mr Brennan is seeking aggravated damages in recognition of the stress he encountered and the difficulty he had paying rent and purchasing necessary items.

He told the court that not being able to take money out of a cash machine to buy food caused "emotional hardship". He added that he was even unable to buy himself a drink on his 30th birthday.

In addition, he is asking for exemplary damages - which are awarded against a defendant when a wrong is deemed to be deliberate, malicious or negligent.

The bank maintains that its fees are lawful and said at an earlier hearing that Mr Brennan should not be trying to be a "guardian of consumer interest" at a time when the Office of Fair Trading is investigating the issue.

Mr Brennan, of Lewisham, south London, said today that the OFT could not force banks to pay back charges - it could only stop them from levying such fees in the future.

NatWest has already offered Mr Brennan almost £4,000 in an out-of-court settlement, which he refused.

He said today: "The defendant has sought to buy their way out of this claim."

The claimant added that NatWest should not be allowed to avoid an adjudication by forcing money into people's accounts.