How to Reclaim Credit Card Charges
Are Credit Card Penalty Charges Unlawful?
If you have a bank account, credit card or loan of any type you will no doubt be aware of the fees you are charged by your bank should you transgress their rules of business. Types of charges include late payment fees, exceeding overdraft and credit card limits, bounced cheque fees, refused direct debits, standing orders and other payments. It is possible to reclaim credit card charges easily.
British Consumer Law states that any charges credit card providers and banks levy on their customers must be proportional to the actual costs the lenders incur. The question is this, does it really cost 35 to send an automated letter when someones gone 1p over their limit? The credit card lenders are not supposed to fine you; yet over the years that is what theyve done whenever people have missed credit card repayment dates or exceeded their credit limit. For this reason you should be able to get back the last six years worth of fees and charges. It is no surprise that the UK credit card industry made somewhere in the region of 9 billion pounds profit last year from interest and charges paid by consumers.
Even the OFT says credit card charges are unfair
It was not realised at the time but a report in April 2006 by the Office of Fair Trading (OFT) was absolutely crucial in supporting the case for reclaiming credit card charges. Having investigated credit card charges the OFT said, in plain English, that it would not launch a specific investigation on any card companies with charges lower than 12. While the OFT ruling had no technical power, across the board, most credit card companies reduced their charges to 12. This was of course a positive step but actually this amount, I feel, is still far too excessive. The real administration costs are usually little more than a few pounds. It has made it a lot easier to reclaim back the difference between what you were charged and the 12 figure. Therefore for each 35 charge, you could receive a refund of at least 23 although many people receive the whole 35.
The bank charges test case doesnt impact on reclaiming credit card charges.
You may have read of the OFTs decision to introduce a Bank Charges test case which has led to the financial regulator, the FSA, putting a hold on reclaiming. Its important to understand this is specifically about bank charges and does not apply to credit card charge re-claims.
There are a number of excellent companies who offer a first class service in reclaiming credit card charges for you. They act on a no-win-no-fee-basis and usually charge a percentage of the total charges refunded to you which varies from company to company.
Why not visit http://www.creditclaimscompare.co.uk for more information on the choice of companies available to help you make a claim.
Julie Ashton is a teacher. She writes on a range of financial matters, debt, debt management options, and particularly about the new Unenforceable Financial Agreement Claims industry which is growing fast in the UK.
This is a new claim which is becoming well known about as more and more people make successful claims and have their credit cards and loan debts written off. It has been estimated that as many as 80% of financial agreements taken out before 2007 are unenforceable agreements as they don’t comply with the 1974 Consumer Credit Act. It is possible to have any financial agreement audited by a solicitor to assess for breaches in the law. If any breaches are found, the contract can be challenged with a view to having the balance completely written off.
Unenforceable financial agreements are just one of the many claims Credit Claims Compare discusses on its website, together with other forms of claims such as;- DIY debt elimination methods, reclaiming credit card charges, reclaiming bank charges, reclaiming mis-sold PPI payments, mis-sold mortgage compensation claims,
http://www.creditclaimscompare.co.uk
It is a free to use comparison site and it provided useful information on the range of financial claims available in the UK. It compares the services and products available and provides a one stop shop for all your financial claims. It doesn’t recommend any particular company but gives you all the information you need to make an informed choice from the best claims management companies available today. It could save you time, thousands of pounds, clear your debts and restore you to financial health, wealth and abundance.