Leeds Mercantile Court in Yorkshire is bracing itself for some 200 cases regarding bank customers’ demands for the return of overdraft charges.

Some have been settled before a hearing, as the banks are extremely wary of going to court and losing a case that may set a precedent which could cost them millions of pounds in refunds as others follow suit and pursue legal redress.

So far only two cases heard by the courts have been lost by claimants, and the sheer scale of the problem is greatly concerning the High Street banks.

They claim that their charges are perfectly legal and that customers have signed up to contracts where the penalties for unauthorised overdrafts are clearly spelt out.

Some cases involve thousands of pounds per customer, with many of these arguing that the charges contravene consumer protection law.