Capital One 15x £12 charges

brunettegirl

I had a rejection letter from Capital one this morning stating -

that the OFT has not challenged the right of the banks to charge default sums, just the level of those default sums. It states that as they have only charged me £12 they are in line with OFT and correctly applied to my account. As a result Capital One believes these charges are both fair and legal and as a result no refund is due.

What should I do - is this right?

They have also ignored the fact that the first charge in Aug 06 was for £20.

Is it worth sending another letter? Has anyone else recieved this letter but still being successful?

Premier_2

...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.
...
While the OFT ruling had no technical power, across the board, most card companies reduced their charges to this £12 level. This was of course a positive step but actually this figure, in my view, is still too high as the real administration costs are usually little more than a couple of pounds.

Yet it certainly has made it a lot easier to reclaim back the difference between what you were charged and the £12 figure. So for each £35 charge, you should get at least £23 of it back; though many may be able to get the whole £35.

...

... If you have asked for the full refund this may be the difference between the fee and the £12 OFT recommendation. Whatever it offers, you need to decide whether it’s worth continuing or just taking the cash....
...
Having said that, as I believe the charges are unlawful, I think it’s worth asking for the full refund at this stage. You can always change your mind later on if you are offered a settlement for the difference between what you were charged and £12...

http://www.moneysavingexpert.com/reclaim/credit-card-charges

natweststaffmember

brunettegirl wrote: »

I had a rejection letter from Capital one this morning stating -

that the OFT has not challenged the right of the banks to charge default sums, just the level of those default sums. It states that as they have only charged me £12 they are in line with OFT and correctly applied to my account. As a result Capital One believes these charges are both fair and legal and as a result no refund is due.

What should I do - is this right?

They have also ignored the fact that the first charge in Aug 06 was for £20.

Is it worth sending another letter? Has anyone else recieved this letter but still being successful?

This is what the OFT said in 2006:


"1.14 It must be stressed that this is a statement of our position and reflects the exercise of our discretion as an enforcement agency. Only a court can decide finally whether a term is unfair, or at what level default charges should be set to meet the requirements of the UTCCRs. It should be kept in mind that other enforcers may apply for injunctions under the UTCCRs and that the UTCCRs may be relied upon by consumers in private claims"

If you challenge them they will pay back the fees in full. They have never challenged the OFT to take them to court because unlike bank charges they are almost certain to lose their case in court.