Is is possible to reclaim this charge?

gemstars

I've been charged £12 late payment fee and £2.31 interest for missing a credit card payment. This is something I'm not in the habit of, I've never missed a payment before it just slipped my mind.

A friend with another back also missed a payment last month. Her back wrote to her to explain the £12 charge and in the letter it states that the letter is a requirement of the Consumer Credit Act 1974.

As I never recieved a letter like this from my bank, can I use this (or anything else) as a reason to reclaim the charge?

I'm doubtful but thought I'd ask anyway.

ILW

If this is a first offence and you give them a call, there is a good chance that they will cancel the charge as it was a mistake. I don't think going in banging on about CCA and your rights etc. will help.

YorkshireBoy

Yes it would appear it's possible to reclaim this charge by the threat, and possible carrying out, of legal action. Whether you deem that a good use of your time and effort for the sake of £15 or so is for you to decide.

It's also possible that if you call them they may waive the fee, but not the interest.

But best of all it's possible to eliminate these charges altogether by setting up a direct debit, thereby making someone else responsible for paying your bills.

nzseries1

I'm reasonably sure that a charge of £12 was considered fair by the regulators, although there was some discussion on it somewhere (can't remember where).

I'm also sure that if you wrote in asking them to explain the charge, you would get something along the lines of "you were late paying, hence the charge".

However, by all means try to reclaim it, after all, it doesn't cost you anything!

NickX

You are best just to call them up and explain that this was due to an oversight. Be apologetic and politely request that they refund you the £12 charge.

For a "first offence" most providers will refund this charge.

You might aswell take the hit on the £2.31 interest as this isn't really worth arguing about.

They are under no obligation under the Consumer Credit Act to make this charge, but then again they are under no obligation to refund it.

Good Luck.

Dabooka

I think a quick call admitting "silly me" and hope they refund the charge; £12 isn't too much to lose sleep over if they refuse. BUT while you're on the phone set up the direct debit as suggested, to prevent this from happening again

Go on, do it, you know you want to!

chattychappy

Yep a polite approach is the best way.

But just for the record, the law only allows the banks to charge what your breach by paying late has cost them. They are not supposed to "profit" out of penalties. The £12 figure has become a de-facto amount that has come to be accepted as an amount beyond which the OFT (I think) would intervene on behalf of consumers. Ie its the maximum amount banks can charge without provoking the OFT. But that's not to say any specific amount below that is always OK. As I say, I wouldn't go quoting the law and getting confrontational.

I would always keep a note of such charges and associated conversations in case one day the law moves on.

BunnyGirl33

NickX wrote: »

You are best just to call them up and explain that this was due to an oversight. Be apologetic and politely request that they refund you the £12 charge.

For a "first offence" most providers will refund this charge.

You might aswell take the hit on the £2.31 interest as this isn't really worth arguing about.

They are under no obligation under the Consumer Credit Act to make this charge, but then again they are under no obligation to refund it.

Good Luck.

From memory I think that any charge over £12 would automatically be considered unfair, anything below would be assessed on its merits should the consumer bring a claim. (exception being Egg where £12 was raised to £16 after their arguments)