The Office of Fair Trading’s (OFT) application for a declaration on the law in respect of unauthorised overdraft charges is due to commence on 16 January.

The purpose of the application is to get a ruling on whether the provisions of the Unfair Terms in Consumer Contracts Regulations that deal with unfairness apply to unauthorised overdraft charges, and will not address whether terms and conditions or specific charges of individual banks are unfair.

However, the OFT is continuing to analyse information supplied by the banks, and further information on the investigation into unfairness will be published after the judgment has been delivered and OFT has had time to consider any implications.

The application for the declaration is brought against Abbey National, Barclays Bank, Clydesdale Bank, HBOS, HSBC Bank, Lloyds TSB Bank, Nationwide Building Society and Royal Bank of Scotland Group. The hearing is expected to last three weeks with judgment to follow some time later.