Consumer credit act 1974 - 28 days notice?

Ellie2758

Hi

I received a letter from Tesco mastercard today warning me that I have gone over limit and they will be charging me a £12 overlimit fee. However, it goes on to say that they are not allowed to charge me interest until 28 days from this notice. Earlier this year I did the same thing with Amazon mastercard (yes I am a bit useless at this, I know) and they didnt give me any notice at all, just put on a fee and interest charges. Did they act illegally, or is this 28 day thing a new ruling?

thanks

JMR52

I was going to ask the same question? Thanks.

[Deleted User]

New thing from the Consumer Credit Directive.

Ellie2758

Thanks. Do you know when this came into being? I have searched online but with no joy...

Deleted_User wrote: »

New thing from the Consumer Credit Directive.

Edit: looks as if companies must comply by Feb 2011

oscar52

What Tesco told you is correct. Interest cannot be charged on a default fee (£12) until after 28 days.

However, MBNA acted legally and it had nothing to do with the "28 day ruling" - the MBNA card would have been on a promotional rate. The interest was charged on your balance and NOT the late fee.

Ellie2758

Sorry I am confused. Tesco havent charged me any interest on my balance whereas MBNA did. I made the same mistake both times, going over my credit limit. I just wonder whey Tesco have given me notice of the fact whereas MBNA didnt.

oscar52 wrote: »

What Tesco told you is correct. Interest cannot be charged on a default fee (£12) until after 28 days.

However, MBNA acted legally and it had nothing to do with the "28 day ruling" - the MBNA card would have been on a promotional rate. The interest was charged on your balance and NOT the late fee.

oscar52

Cant really answer for Tesco, their T&Cs may be different.

As you said, you went overlimit. As far as MBNA are concerned, this breaches your agreement. If you had a promotional balance, you would then be subject to interest on the entire balance.

As for notice ..... well, MBNA will tell you that it is up to you to know how much credit you have left etc etc - they dont buy the fact that THEY authorised the transaction.