Customers who believe they have incurred unfair credit card charges can continue to complain and if the credit card company refuses to deal with the case, or fails to do so satisfactorily, the matter could be referred to the Financial Ombudsman or the courts.
The legal argument on unfair charges is based on contract law stating that if a contract is breached, for example by late payment, then the credit card company can charge you and the courts will enforce payment, but the sum must reflect the cost incurred by the credit card company and not be punitive. If the credit card company argues that the charge is for a service, it is possible to argue that under a separate act, the charge must be reasonable.
The Office of Fair Trading supported customers' arguments when it ruled last year, that card companies should not be charging more than £12 for default charges, and would have to provide substantial evidence if they did.
Most credit card companies will charge customers for three main things – late payment, exceeded credit limits and returned payment. These charges will not be obvious but will be included in the 'new transactions' section of your credit card statement. Therefore, the responsibility is definitely on you to check your monthly credit card statement.
Card companies tend to be more lenient on charges than banks. For example, if you make a payment a couple of days before the due date but it does not clear in time, it is likely they will remove the charge if asked. Unless default on a regular basis, it is always worth asking your card issuer to reverse a penalty charge. After all, the credit card market is cut-throat and competition is fierce to retain your business.
With an expert legal team and extensive experience in dealing with unfair credit card charges claims, make PPI Claim Management your first choice.
The legal argument on unfair charges is based on contract law stating that if a contract is breached, for example by late payment, then the credit card company can charge you and the courts will enforce payment, but the sum must reflect the cost incurred by the credit card company and not be punitive. If the credit card company argues that the charge is for a service, it is possible to argue that under a separate act, the charge must be reasonable.
The Office of Fair Trading supported customers' arguments when it ruled last year, that card companies should not be charging more than £12 for default charges, and would have to provide substantial evidence if they did.
Most credit card companies will charge customers for three main things – late payment, exceeded credit limits and returned payment. These charges will not be obvious but will be included in the 'new transactions' section of your credit card statement. Therefore, the responsibility is definitely on you to check your monthly credit card statement.
Card companies tend to be more lenient on charges than banks. For example, if you make a payment a couple of days before the due date but it does not clear in time, it is likely they will remove the charge if asked. Unless default on a regular basis, it is always worth asking your card issuer to reverse a penalty charge. After all, the credit card market is cut-throat and competition is fierce to retain your business.
With an expert legal team and extensive experience in dealing with unfair credit card charges claims, make PPI Claim Management your first choice.
Please complete our claim form or call us today on 0844 3580381.
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