AT 9.45am on Thursday, I sat in the Supreme Court as the walls crumbled in on the campaign to reclaim unfair bank charges.

Yet, while it felt devastating then, with time to reflect the damage isn't quite as bad as first thought.

This is something I've been involved in almost since the beginning - six million of my reclaiming template letters have been sent out, hundreds of millions of pounds paid out to people using them and I've been described as the campaign's "big-gob-in-chief".

So you can imagine how it felt to have to walk out and face the cameras, as the legions hoping for refunds heard the disappointing result.

ALL ON A TECHNICALITY.

Amid the coverage, it's rarely been mentioned what actually stopped up to 8million people claiming back billions unfairly taken for going beyond their overdraft limit.

Put simply, it all rested on the Supreme Court's decision that these bank charges are a "core part" of the price of a bank account, rather than a lesser charge as ruled by the High Court and Court of Appeal.

And while that still makes it two senior courts against one, as its name suggests the Supreme Court decision wins - and millions lose.

You may think, "What difference could that make?" and that's sort of the point - it's legal, it's technical. It doesn't mean bank charges are fair, it means the Office of Fair Trading can't decide whether they're fair or not.

SO WHAT'S THE HOPE?

Like many in court, chief judge Lord Phillips' calm and measured voice sounded to me like a megaphone booming, "You've lost, you've lost!," so I didn't take in what I now think was a deliberate last hint. He said this ruling didn't stop people challenging banks' fairness under "Clause 5" - in other words, a glimmer of hope it may be possible another way.

It's the OFT that took the case against the banks, and it gives its view in December. Sadly that'll be too late for many of the million-plus people on hold right now, so I'm getting a top barrister to see if it's possible to redraft template letters based on this Clause 5 and carry on the fight.

Of course, the mailbag's swamped. Here are the most common questions:

Q I've already got money refunded - can the bank take it back?

A No. If you got bank charges back previously it was a "goodwill payment" so keep the money and smile.

Q My case is on hold at the courts, what'll happen?

A It's likely the hold will be lifted and you'll almost certainly lose or have the case struck out. However, it may be possible to amend your claim to the new arguments and that may give you a chance - or at least a negotiating point with banks (details below).

Q My case is on hold at the Ombudsman, what'll happen?

A Again it's likely you'll fail but it's said that some specific cases of those in hardship whose charges spiralled, or those charged when they were only a tiny bit over the limit, will be heard.

Q My case is on hold with the banks, what's going to happen?

A Banks have eight weeks to deal with this and it's likely they'll be swamped - but eventually it's likely your claim will be thrown out.

Q If my case is rejected by my bank, can I try again?

A Yes, hopefully, following these new legal arguments (see below).

Q I haven't yet put in a claim, but I want to. Should I?

A Sit on your hands for the moment, while the law's assessed.

Q How likely is it that people will get their money back?

A Whether your case is with courts, banks or at letter stage, even with the new argument your chances are limited. My guess is a 10 to 20 per cent chance only. So work your budget assuming you won't get cash back, but cross your fingers.

Q How do I get hold of the new template letters?

A With my barrister's help the aim is to get them out within a fortnight, but the law's complex and it needs to be done carefully to maximise chances. When they're ready, I'll notify people via my free weekly e-mail (get it from www.moneysavingexpert.com/tips )

Q Going forward, how likely is it charges will be made fair?

A Very likely. A senior No10 source told me: "The PM wants consumers treated more fairly, including a fairer system of charges. We'd already asked Northern Rock, Lloyds and RBS to review charges. If banks won't change we're looking at a compulsory system."

Q Does this impact on any other reclaiming campaigns?

A Absolutely NOT. This only impacts on bank charges, so reclaiming credit card charges, mortgage exit fees, payment protection insurance and council tax is still on (see more at www.moneysavingexpert.com/reclaim ).

Q Was the unfair charges campaign wrong all along?

A Remember, more than £1billion has been paid back, many banks have lowered their fees, and people have learned banks' priority is to sell, not advise, and you CAN take them on. Even with this week's news, it's still the most successful consumer campaign since the poll tax riots.

Questions for publication on bank charges or other MoneySaving to notw@moneysavingexpert.com

Halifax's 3,650% interest overdraft

HALIFAX has sounded a fanfare over new "simpler" overdraft charges that start in a week. But for many customers, simple doesn't mean cheaper...

* - The Good News: At least there's a little bright spark for bank charges - regularly breach your overdraft limit and instead of £35 per transaction - a sting that could cost you hundreds of pounds a day - it's now a £5 daily charge. Yet if you're regularly penalised, change how you manage your money. The best way to beat bank charges is avoid them.

* - The Bad News. There's a list . . . Halifax's "high interest" customers will now earn no interest, the amount you can go overdrawn without paying will drop to just £10, and instead of a typical 20 per cent overdraft rate, it'll charge £1 A DAY if your overdraft's £2,500 or less, and DOUBLE that if you owe more. So someone £10 overdrawn for a day would be charged £1, equivalent to a 3,650 per cent annual interest rate.

That's a nightmare for anyone regularly dipping into their overdraft by small amounts. Owing an average £300 for 15 days of the month will cost £180, about six times more than now.

* - What to do? Those regularly overdrawn could ditch and switch - you can get £100 and a year's 0 per cent overdraft for joining Alliance & Leicester.

If you stick with Halifax, ask to be moved to its Rewards current account. If you earn £15,000+ and pay your salary in, it gives you a fiver a month as a great bonus. But mind you don't slip into the red for even a few days.

TV Money Guru Martin Lewis is the creator of the Consumer Revenge website www.MoneySavingExpert.comwhich is packed with info on how to get more money in your pocket.

To read Martin's previous columns in the News of the World click here

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