Credit card companies have been known to charge between £20 and £35 for small indiscretions such as late payment fees. However, a ruling by the OFT, means that these charges are likely to be deemed ‘excessive’ and you may be entitled to a refund.
A review by the Office of Fair Trading found that charges on credit cards were deemed inappropriate for the inconvenience caused to the credit card company.
In April, the OFT stated that credit card default charges had been generally set at a significantly higher level than was considered fair and set a £12 threshold for OFT intervention unless there were exceptional business factors. Many card issuers have stated that they do not agree with the OFT’s view of the law and that they believe that their default charges were fair but, in view of the reduction in charges across the market, the OFT is satisfied that no further intervention is warranted in this area at this time and that this change has brought about substantial benefits for consumers.
If you have been charged over £15 it is worth writing to your credit card company asking for a refund. The sooner you can do it the better, but, refunds may be given back for anything up to 6 years ago.
In the first instance, you should write to your credit card company. Stating when the charge was made and why you should be given a refund. If this doesn’t lead to any refund, you can make a complaint to the financial ombudsman service and if necessary consider taking it to the small claims court.
1 comment so far ↓
thanks for the post. i hope to listen some more.
Best regards from Sebbi
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