The Office of Fair Trading (OFT) has welcomed a High Court ruling that gives int the power to determine when banks have been levying overdraft fees unfairly.

Millions of people have faced charges for going over their overdraft limit without permission and for many these fees add to their existing difficulties in terms of debt management.

Other legal issues are expected to arise as a result of the recent ruling but it is hoped that the OFT will be able to effectively deter current account providers from piling on the misery for customers who are already facing serious debt problems.

A statement from the OFT read: "This is an important early milestone for the OFT and our investigation into this area of high consumer interest.

"We are now analysing the implications of the judgment for our overall investigation into the fairness of the terms."

MoneyExpert reported last week that lenders in the UK are turning the screw on their customers and turning down close to 18,000 credit card applications every day.