Consumer law states that any charges lenders levy on their customers must be proportional to the actual costs they incur: How can any lender justify charging £35 to send an automated letter? (you might only be pennies over your limit). If you’re facing financial difficulties is adding extra £s really going to solve your problem? You’re not really supposed to be fined but as you know over the years that’s exactly what lenders have done, whether you’ve missed a credit card payment, been a few days late or perhaps burst your limit!
Did you know you may be able to reclaim the last 6 years charges back, with interest.
A report in April 2006 by the OFT was crucial in supporting reclaimers’ cases. Having investigated credit card charges the OFT said, in plain language, that it would not launch a specific investigation on any card companies with charges lower than £12. Whilst they had no technical power, across the market, most card providers reduced their fees to £12 per event.
This has certainly made reclaiming a lot easier – claiming back the difference between what you were originally charged i.e if you were charged £35 you could get back £23 each time, in many instances you could actually get the whole £35.00 back (this could be quite a significant amount over the past 6 years!)
Don’t get confused or put off – The Supreme Court Ruling on Bank Charges does not impact credit cards
The OFT took on the banks in a test case, and actually beat them in the High Court, then again in the Court of Appeal. However in November 2009, the Supreme Court ruled that due to a narrow technical decision bank charges didn’t NEED to be fair – well at least on the main piece of law that was tried – this was a shock judgment, that followed strong arguments from the banks expensive barristers.
It’s important to understand this is specifically about bank charges and does not apply to credit card claims.
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