£12 over limit charge - unfair?
HeatonGuy
Posts: 102 Forumite
So I have a small credit card which I pay off every month. And I use it to the limit, for business-related expenses.
On two occasions now, despite clearing the card in full and in time, I've been charged a small amount of interest, which has been enough, on each occasion, to take me pennies over my limit. We are talking no more than £2-3 charges, probably due to having to take cash out in an emergency.
The instant this happens, the card also applies a £12 over-limit charge, even though I'm over the limit due to their action, not my mismanagement.
When I point out that adding £12 on top of interest is unfair, and for details of the complaints department, I'm told they don't have one...
Would it be reasonable for me to make a formal complaint, sent to their registered offices by Signed-For post giving them 14 days to refund both charges, and stating that if they do not do so, I will refer the matter to the relevant ombudsman/regulator
On two occasions now, despite clearing the card in full and in time, I've been charged a small amount of interest, which has been enough, on each occasion, to take me pennies over my limit. We are talking no more than £2-3 charges, probably due to having to take cash out in an emergency.
The instant this happens, the card also applies a £12 over-limit charge, even though I'm over the limit due to their action, not my mismanagement.
When I point out that adding £12 on top of interest is unfair, and for details of the complaints department, I'm told they don't have one...
Would it be reasonable for me to make a formal complaint, sent to their registered offices by Signed-For post giving them 14 days to refund both charges, and stating that if they do not do so, I will refer the matter to the relevant ombudsman/regulator
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Comments
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It will be in the Ts & Cs that you read when you signed up.0
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You withdrew cash, the interest charge is entirely of your doing. Your subsequent failure to pay the full amount is your mismanagement.
Threaten the Ombudsman all you want, you don't have grounds for complaint.0 -
Would it be reasonable for me to make a formal complaint, sent to their registered offices by Signed-For post giving them 14 days to refund both charges, and stating that if they do not do so, I will refer the matter to the relevant ombudsman/regulator
Not really. The fees were reviewed and the stance from the regulator was that anything £12 and under didn't cause them any particular concern.
You might get a goodwill refund if you ask nicely, but you're not going to get regulator intervention.
The charges will be due to your actions, not theirs. If you genuinely believe they are not, then you should escalate a complaint about the interest, rather than the fees. However, it's because you are using cash, which is attracting the interest.0 -
Indeed. Withdrawing cash attracts interest from the moment it's withdrawn, there is no interest-free period as for purchases. You should familiarise yourself with the terms of your credit agreement and pay withdrawals off ASAP to minimise interest.You withdrew cash, the interest charge is entirely of your doing. Your subsequent failure to pay the full amount is your mismanagement.
They may refund the over-limit fee if you ask nicely, assuming it was purely a small amount of interest that took you over, but you have no grounds for complaint.0 -
Maybe don’t sail so close and leave a buffer0
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@Heatonguy
I understand your frustration and it probably will be covered under their terms and conditions.
Despite this, you're absolutley right to be upset about the bank taking advantage of a minor oversight to make a few quid from you.
My advice would be to call them and ask them nicely to refund the fee, explaining how much of a loyal customer you are blah blah blah. If you don't get what you want ask to speak to a manager.
If they still refuse you are within your rights to make a complaint. Do not be fobbed off. All Financial services companies must have an official complaints procedure in place. The fact that you have been told otherwise is itself grounds for complaint. The Ombudsman may not uphold the complaint about the charge but they will take a very dim view of the bank obstructing your complaint in this way.
Your success depends on how far you're prepared to push and how much the bank value your custom. They may refund you if you threaten to take your business elsewhere.
Should you make a formal complaint with the bank and make it clear that you're going to go to the Ombudsman, chances are they'll give in and refund you for the simple reason that it will cost them £550 irrespective of the outcome
I tend to find that if you stick to your guns you will eventually get what you want from large companies. If you complain hard enough and don't back down and refuse to be fobbed off you will be successful. It just depends how much of a nuisance you want to make of yourself.
Good luck and hope you get your money back.0 -
A common misunderstanding. Currently only one in five complaints are chargeable...Should you make a formal complaint with the bank and make it clear that you're going to go to the Ombudsman, chances are they'll give in and refund you for the simple reason that it will cost them £550 irrespective of the outcome
...and this wouldn't be one of them!FOS wrote:Only around one in five of all the initial complaints and enquiries we receive go on to require more detailed work by our case-handling staff or ombudsmen. And it is only at that stage that a case becomes "chargeable".
http://www.financial-ombudsman.org.uk/faq/businesses/answers/funding_a5.html
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It's also rumoured that the actual cost for a complaint to the big banks is well below the figure quoted, though I haven't seen any indication of what it might be.0
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Rather than seeing it as unfair, see it as a lesson.
Learn from it, monitor your balance closely, understand what type of transactions incur interest and don't repeat it.I’m a Forum Ambassador and I support the Forum Team on the Budgeting & Bank Accounts, Credit Cards, Credit File & Ratings and Energy boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
If you can't be the best -
Just be better than you were yesterday.0 -
You're right, only complaints reviewed by an ombudsmen are chargeable.
However a customer and the bank can appeal if they disagree with the adjudicator's decision and it is at this stage that the FOS will levy their fee.
So effectively all a customer has to do is disagree with the adjudicator's decision if it goes against them. This then lands the bank with a potential bill far in excess of what it would cost to resolve the matter.
From my experience in the industry and as a moaning customer the bank is unlikely to risk this for the sake of refunding a £12 fee.
My point is, you should aim to bring about a situation where it becomes too time consuming or costly for them to not back down. Granted it's not going to work for ridiculous sums, but for £12 the odds of success are in your favour.
Just depends on how much of a pest you're prepared to be.
Those that shout the loudest get heard and Heatonlad hasn't got anything to loose by giving it a go.0
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