The UK's biggest banks have lost a High Court test case about overdraft charges.A judge has decided that the Office of Fair Trading (OFT) can apply consumer contract regulations to decide if bank overdraft charges are fair or not.But the judge also decided against the OFT, saying that the banks' terms and conditions are plain and intelligible.Since the beginning of 2006, thousands of customers have tried to reclaim charges that can be as high as £39 when an agreed overdraft is exceeded or a direct debit or cheque bounces, on the grounds that they were too high and unfair.The OFT believes the extortionate charges do not reflect the true cost incurred by the banks, which is thought to be as little as £2.50.The High Court itself has not ruled that the charges are unfair and more hearings are expected, which means claims will be delayed and customers should not expect automatic payouts.Claims from consumers have been put on hold since the OFT first agreed with seven banks and the Nationwide building society last July to stage the test case to decide if it had the power under consumer contract regulations to regulate overdraft charges.Prior to this, banks are estimated to have paid out more than £550 million in refunds to customers.In a statement to the press, the OFT said: "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. "There may need to be further hearings to determine any outstanding issues arising from the judgment. The timetable for next steps will be decided by the court at a hearing before the end of May."The hearing is expected to take place on 22 May, when it is possible that the banks will appeal.Customers are advised to keep records of any charges pending further news from the OFT.What do you think about bank charges?