The First Bank Charges Court Hearing
Is barrister Tom Brennan a hero, a self-publicist, or lacking in judgement? We speculate about his Friday the 13th court case for recovering bank charges.
On Friday 13th, Barrister Tom Brennan is taking NatWest to court over unlawful bank charges. He was charged a total of £2,500 in penalty fees when he was a law student. NatWest, clearly running scared, offered him £4,000 to settle the case out of court, but denied liability.Brennan wasn't happy with this. He wanted an admission of liability, so he decided to pursue the case through the courts. He has added to the claim a request for exemplary damages, meaning he wants the bank to be penalised financially for its unfair behaviour.Can he win?At first (and maybe second) glance he appears to be reckless. At £4,000, his bank has offered him a full settlement and then some. In my view, it's highly unlikely that Brennan will receive more than £4,000, even if he is awarded exemplary damages.Damages have to be reasonable and proportionate. Unless there is some great, forseeable loss that he has suffered, it's hard to see him getting exemplary damages of more than 50% of the total charges, or even anything like that.It may not end in a simple decision. For starters, Brennan or NatWest could appeal. Or maybe, at the door to the court room, NatWest will offer a settlement that Brennan can't refuse.Is Brennan lacking in judgement?And then there's the issue of costs.If Brennan's total claim is for more than £5,000, and the judge doesn't award him more than the £4,000 NatWest offered, Brennan might have to pay all the bank's legal costs from roughly the time he declined the offer.These costs could run to tens of thousands of pounds. For Brennan this would mean bankrupcty.Plus, it previously wouldn't have been possible for NatWest to recover legal costs if the total claim was for less than £5,000. However, since last year, it's now possible for the defendant, NatWest, to recover its legal costs if the claimant, Brennan, acted unreasonably. The judge may not look kindly on a man who has wasted the court's time, especially as a barrister should know what he's doing.Is Brennan a hero?However, Brennan may have motivation other than money. In an interview on BBC Radio 4's Money Box, he said the judge may not award costs "if he decides I am bringing this for public reasons".It's likely, then, that Brennan is bringing this case to finally set some court precedent for other claimants. If he has drafted his plea sensibly, and I hope that he has, the court should make a ruling on penalty charges that might benefit everyone. Otherwise, it may lead to an uncertain decision.Is he attention-seeking?That's a possibility. It may be that he's doing this for the media attention and to further his career. Considering how much publicity he's got, that is not hard to believe either.Is this case worth it?It seems like a huge risk for only a very small potential gain. If the judge rules the charges are unfair, anyone who has been penalised will still need to submit claims to get their money back. Would you spend £10,000 or more when all claimants need to do is ask for the charges to be paid back?Is Tom Brennan a hero, a self-publicist or a touch bonkers? Maybe we'll find out when he joins us for next week's podcast.> Read The Ultimate Guide To Reclaiming Bank And Card Charges.> Compare current accounts.