LLoyds TSB are defending my credit card charges claim...

Rick01

Alpine_Star wrote: »

Complete rubbish.

(a) The definition of the main subject matter of the contract is for you to borrow up to a certain amount of money and repay certain amounts at certain times. It is not for you to borrow more and not repay it on time.

(b) The price in exchange for the services provided is the interest charged on the lending - not charges for defaults.

In April 2006 the OFT gave credit card providers an ultimatum: reduce default charges from circa £25 to £12 or face litigation based on the regulations Lloyds are quoting you and Lloyds reduced their charges. If they truly believed that the exemptions a & b applied they would have happily trotted into court.

Is it the same defence that they used in the Test Case?

When the OFT lost, didn't the judge say that they were using the wrong legislation to challenge the banks? What's different with credit cards?


At the moment I think Lloyds are doing one of two things; either they're trying to scare me off, but will eventually settle, or they are planning their own little test case.

Alpine_Star

Yes it's the same defence and they are no doubt using it because it had so much publicity in their bank charges test case victory which they won because they managed to pursuade the court that the charges were NOT default charges but service charges so that the exemption 6 (2) applies. In essence they are stupid and they think you are too.

Yes they are trying to scare you off but like the vast majority of credit card cases, they will eventually settle before going to court.

You only need to look at the number of successful credit card claims since the bank charges judgment to realise that they have no intention of using this or any 'defence' in court http://forums.moneysavingexpert.com/showthread.html?t=571297&page=49

Rick01

UPDATE

Lloyds agreed to settle for the whole amount, including interest, in April. I only received the cash, though, just over a month ago - right before the court date. When I told them I would lose my hearing fee, since they had left it so late, they sent another cheque to cover it and the matter has now been settled. Many thanks to NatwestStaffMember, Alpine Star and anyone else who offered advice.

Alpine_Star

Rick01 wrote: »

UPDATE

Lloyds agreed to settle for the whole amount, including interest, in April. I only received the cash, though, just over a month ago - right before the court date. When I told them I would lose my hearing fee, since they had left it so late, they sent another cheque to cover it and the matter has now been settled. Many thanks to NatwestStaffMember, Alpine Star and anyone else who offered advice.

Nice one.

The moral of this story is never back down from reclaiming all credit card default charges. Lloyds never had any intention of relying on their 'defence' in court - it was laughable. Like I said, they are stupid and they thought you were too.