A judge believes that some banks are abusing the legal process by resolving UK current accounts bank charges cases, in which they have initiated legal action, before they get to court.

District Judge Toombs said that he may strike out the defence put forward by banks unless they assure him they will contest them in court. Many banks instigate legal action on UK current accounts cases but then settle out of court.

Lloyds TSB, which has been given 14 days by Judge Toombs to detail all the claims it has pursued and whether and when it has settled them.

A spokesperson for Lloyds TSB, a major provider of UK current accounts, said: “The judge made his order without a hearing so we were not given a chance to make legal representations. We believe that the order was legally flawed.

“We judge cases on an individual basis and in this case made a decision to settle. Had we not settled we would have applied to have the order set aside.”

Thousands of holders of UK current accounts have successfully appealed in the county courts to reclaim their bank charges but no legal precedent has yet been set as settlements are usually reached just before cases get to court.