Supreme Court ruled in favour of the High Street banks in a row over overdraft fees, delivering a blow for thousands who had hoped to recoup charges, the Daily Telegraph reports.

Seven major banks and a building society had challenged High Court and Court of Appeal decisions that the charges come under “unfair contract” rules and are therefore subject to regulation by the Office of Fair Trading.

Today’s result was awaited by tens of thousands of customers whose refund claims have been frozen while the test case went through the courts.

Customers who go into unauthorised overdraft or breach their agreed limit can be charged as much as £35 or more for a single bounced payment. Campaigners claim the actual cost to the banks could be as little as £2.50.

If the banks had lost the test case, it could have cost them £2.6bn a year in lost revenue and led to their having to make refunds of up to £1bn.

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