But Mr Justice Andrew Smith stopped short of saying whether charges for unauthorised overdrafts were unfair.

There are no extra unauthorised overdraft charges.

It claims customers face unreasonable charges for unauthorised overdrafts, honour and dishonour fees and late and over-limit fees for credit cards.

Sources in the payday lending industry say lenders are asking the FCA to also cap the charges that banks levy on unauthorised overdrafts.

So if you have an unauthorised overdraft for 15 days or more per month, the maximum you will need to pay will be £90.

But several banks disputed whether the charges, typically between £24 and £39 per unauthorised overdraft, came under the OFT's remit, triggering the legal dispute.

Thousands of customers have reclaimed the charges, typically between 24 and 39 pounds for each unauthorised overdraft, after a high profile customer backlash last year.