The latest figures from the Financial Services Authority (FSA) on banking complaints show that bank charges and mis-sold Payment Protection Insurance (PPI) are the most complained about. The number of related claims has risen sharply compared to the 2nd half of 2008 despite the ongoing bank charges test case and legal struggles.

In total 854,000 banking and loans related complaints where made, representing a 22% increase on the same 6 months last year. It’s no surprise that banks were the worst offenders and received over 1m complaints, a shocking amount compared to building societies, who only had to handle 60,000. Building societies also upheld more complaints than banks at 54% whith banks only upholding 35% of claims made against them.

You, like many other banking customers are no doubt fed up with the high charges and low value of bank accounts. Thankfully, there’ll be a court ruling to reduce charges which is expected soon and high street banks are already initiating the changes that they believe will be made.

The latest to adopt the simpler bank charges system is Halifax who will charge a flat fee for each day the account is overdrawn rather than varying penalties and interest on top. Under the new regulations, authorised overdraft use will be charged at £1 a day and for unauthorised borrowing, £5 a day.

Heard of the ‘good bank/bad bank’ model? Well it’s a financial tool that’s currently being used by the EU to split banks such as Northern Rock in 2. The idea goes back to the market crash of ‘29 when the US Govt. took over failing banks and seperated the assets from the toxics. The EU today decided that Northern Rock should be split down the middle to do exactly this and they aren’t stopping there.

The now semi-nationalised RBS and Lloyds (LON:LLOY) are to be broken up, separating all the individual banking institutions owned by them. This will be a welcome move for many who appied for a bank charges refund only to be turned away. In their place, new retail banks will be created, modelled on non-diverse utilitarian outfits. The idea being that an increased number of individual banks will lead to more competition and better products for the consumer.

Another acronym joined the fight against bank charges this week in the form of the BIS or The Department for Business Innovation and Skills. They’re Govt. and have launched proposals for a ban on the increase of interest rates on existing debt.

Under the proposal, banks and lenders couldn’t increase the interest rate on a credit card while there is debt outstanding. It’s an important case to make when you consider that the UK has around 63 million credit cards with 66% showing a balance outstanding. Instead of the increased interest, borrowers would be made to make increased minimum payments to clear the debt sooner.

Consumer action group, Which? recently released the findings of their latest investigation into Payment Protection Insurance (PPI) and bank charges reclaim Companies. It doesn’t make good reading for some claim Companies who were found to be being just a little bit too crafty for both Which?’s liking and possibly also the Ministry of Justice’s.

Researchers from the product comparison and review site rang 38 Companies posing as claimants and although the majority behaved well, 12 did suggest that the researcher be better off claiming a bank charges refund with them, than on her own. Another part of the investigation asked those Companies that publicised high claim sucess rates to prove them, this left 16 such Companies unable to show proof of their ‘90% success rate’.

This investigation then, is a wake up call for those claim Companies that have lost sight of the reason for their existence. Banks treated customers unfairly and bank charges claim specialists are part of an industry that’s here to put that right, not to add to the deception.

Finally! Just as we were beginning to think it was impossible to find a QUANGO that has some bite and backbone, it looks like we’ve found one.

The Financial Ombudsman (Fos) has stepped up to the plate and knocked the banks for six after it discovered that many of them were turning away bank charges claims from those in Financial difficulty. Even though reclaiming charges of up to £39 a time is currently frozen while the bank charges test case continues, claims by those in financial mire must deal immediately.

So, in response to this potential flouting of the law, the Fos is going do what the lenders do best – send a letter. It’ll go to all the UK banks and building societies requesting that they treat those in difficulties “fairly”. And if they don’t play ball? Well, the FSA can step in and they have the power to de-ice the freeze on all claims being processed. Bring on the backbone!

The whole bank charges problem has come about after banks and lenders slapped inappropriate and often unfair fees on customers accounts without them knowing. But it seems that even the bank charges that customers are happily paying could be just as frustrating.

We’re talking about those accounts that your bank tries to get you to sign up for, the ones with the free perks if you pay a monthly fee. In some cases, customers have paid up to £300 a year for services such as commission-free currency, mobile phone insurance and ID theft insurance.

But after a Which? survey found that 10% of those surveyed did not use any of the extras they were paying for or that they were available elsewhere for less, it seems that these monthly fees are just more unecessary bank charges.

Get a load of this: one of the UK’s leading newspapers has put the total bank charges repayment bill close to £20billion if the banks are forced to pay back every penny.

The Daily Mail’s finance section: Money Mail has revealed that this is the estimated payout if the outcome of the case between the banks and the Office of Fair Trading (OFT) goes in the public’s favour. The case has been ongoing since 2007 and is now, hopefully, in the final stages as the banks await the Supreme Court decision to their appeal.

The Supreme Court will decide whether the OFT can challenge the banks and argue the bank charges are unfair using so-called fairness rules.

Tesco, Asda, Sainsbury’s – they may have all started out as one shop outfits in a small town somewhere but now they’re retailing giants. From food to clothing, electrical goods to petrol; their supermarkets have become everything we need to live and be content.

But they aren’t just offering products, they’re now bonifide service providers and each have a range of financial products available to customers. Take Tesco, they renamed their financial arm ‘Tesco Bank’ last week and already have half a million savings accounts with a total balance of £4.6bn.

This then, is the future of banking and it makes some sense, you get everything else when you visit your supermarket, why not have your bank there as well? After all the debacle of unfair bank charges and the recession, Asda, Sainsbury’s and Tesco are capitalising on the poor public opinion of traditional banking houses by offering a more friendly and trustworthy financial proposition. All upfront, given to us straight by back pocket-tapping Jamie Olivers and well known voice-overs. So then, are we witnessing the rise of the Superbanks? Only time (and the banking public) will tell.

This bank charges test case has been going on for nearly 2 and a half years now and we’re seemingly no closer to a resolution on the matter. There’s been extension after extension and delays followed by appeals, all of which means the victims have been unable to get their hard-earned back.

This situation will come to an end and probably quite soon (although we’re not going to say it’ll be over by Christmas) but in the mean time you can still get your unfair bank charges claim in the system and in the queue. And remember; Credit Card charges are exempt from the test case ruling and can be paid out. Also, if you’re facing financial hardship (who isn’t) then your case has to be heard and a decision made, so be sure to look through those statements.