Halifax credit card changes - Ombudman says they are fair

jesusjuice

Hi all,

I had some charges on an old Halifax card, Halifax refused to pay up. I went to the ombudsman on the advice of the reclaim credit card charges article on this website, the link of which I am unable to post due to forum restrictions.

It seems it's a little out of date when it says going to the ombudsman has never failed because I got a letter this morning saying the £12 charges are fair.

Is the small claims court my only option now, and what's the likelihood of success? Don't want to have to pay the fees only to be told to stick it.

Many thanks

Little_Mo_70

jesusjuice wrote: »

Hi all,

I had some charges on an old Halifax card, Halifax refused to pay up. I went to the ombudsman on the advice of the reclaim credit card charges article on this website, the link of which I am unable to post due to forum restrictions.

It seems it's a little out of date when it says going to the ombudsman has never failed because I got a letter this morning saying the £12 charges are fair.

Is the small claims court my only option now, and what's the likelihood of success? Don't want to have to pay the fees only to be told to stick it.

Many thanks

Was it the adjudicator from the FOS who told told you the charge was fair? Because they now seem to have one of these looking at cases initially and then, if you're not happy with the adjudicator's findings you can request that your complaint be then reviewed by the FOS. Strange but that's the way it's worked for me recently. Very long winded process but I suppose that they are inunated with complaints and, often the adj. can sift out the less complicated cases.

Premier_2

jesusjuice wrote: »

Hi all,

I had some charges on an old Halifax card, Halifax refused to pay up. I went to the ombudsman on the advice of the reclaim credit card charges article on this website, the link of which I am unable to post due to forum restrictions.

It seems it's a little out of date when it says going to the ombudsman has never failed because I got a letter this morning saying the £12 charges are fair.

Is the small claims court my only option now, and what's the likelihood of success? Don't want to have to pay the fees only to be told to stick it.

Many thanks

Here's the link:
http://www.moneysavingexpert.com/reclaim/credit-card-charges

When it suggests going to the FOS has never failed, it refers to claims where there is an amount of "difference between what you were charged and the £12 figure"

In fact it also says:

"There is a chance it’ll offer some of the money you want. 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."

It wouldn't say this if simply complaining to the FOS would guarantee you the refund of all the £12 fees too.

Only a court can decide if the £12 fees are unfair. The OFT will not take automatically take action against fees that are £12 or less. If you decide to take court action, what charge are you proposing would be fair and why??? :huh:

dunstonh

It seems it's a little out of date when it says going to the ombudsman has never failed because I got a letter this morning saying the £12 charges are fair.

The OFT review is what the FOS go by. The FOS will reject complaints on charges of £12 or less or £16 for Egg.

as above, you appear to have misread the article.

jesusjuice

Premier wrote: »

When it suggests going to the FOS has never failed, it refers to claims where there is an amount of "difference between what you were charged and the £12 figure"

In fact it also says:

"There is a chance it’ll offer some of the money you want. 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."

It wouldn't say this if simply complaining to the FOS would guarantee you the refund of all the £12 fees too.

Only a court can decide if the £12 fees are unfair. The OFT will not take automatically take action against fees that are £12 or less. If you decide to take court action, what charge are you proposing would be fair and why??? :huh:

Thanks all who replied. Yes, it does appear that I have misread the article. :embarasse

Well, the FOS say they've got proof from Halifax that it does cost them £12 when I go over my limit (in fact, more), although frankly I can't see how that's possible, and it goes on to say that these charges were calculated in line with the OFT's April 2006 statement.

What do I think fair charges would be? Well Vanquis had no problem refunding me all the money so they must think a £0 charge is fair, so I'd go with that.

dunstonh

Well, the FOS say they've got proof from Halifax that it does cost them £12 when I go over my limit (in fact, more), although frankly I can't see how that's possible, and it goes on to say that these charges were calculated in line with the OFT's April 2006 statement.

If you believe that your assessment of their charges is more accurate than theirs, then produce your evidence and breakdown of costs and see what happens.

Remember that the costing is not just the "press of a button" which in itself is very cheap. It is the cost of putting in place all the resources that allow that press of the button. As well as staff costs of not only the person pressing the button but their supervisors/management/compliance, call centre staff etc as well as the risk premium you now invoke.

What do I think fair charges would be? Well Vanquis had no problem refunding me all the money so they must think a £0 charge is fair, so I'd go with that.

Some companies auto refund on small value complaints as it is cheaper to do so. Others do not. Saying £0 is fair is unrealistic and wrong.

maxzorin_2

I'm surprised at that response from FOS. They helped me out very recently with similar scenario.

I recently complained to FOS after my initial complaint to the financial firm was rejected, I calculated around £96 worth of £12 charges since September 2010 to Jan 2012.

Initially the FOS wrote to the firm to ask them to refund the charges, they refused at first saying they had previously refunded charges & believed their charges were fair.

That request by the FOS was done informally, and as the business refused, they wrote back to them formally asking for them to refund the charges or to provide FOS with information that shows the charges were fair.

After waiting a month or so eventually got a letter through from the FOS saying they had heard back from the firm which basically said 'although we believe are charges are fair, as a gesture of goodwill we will refund etc.

I have complained to the FOS more than once for £12 charges and never had a problem.

I would do as Little Mo suggests above.

dunstonh

I'm surprised at that response from FOS. They helped me out very recently with similar scenario.

I'm not surprised as it is their stance for many years.

After waiting a month or so eventually got a letter through from the FOS saying they had heard back from the firm which basically said 'although we believe are charges are fair, as a gesture of goodwill we will refund etc.

I have complained to the FOS more than once for £12 charges and never had a problem.

There is a sort of filter system in place with certain complaints that allows a firm a last chance to look at the complaint before an adjudicator is allocated to the case and allows the firm to resolve the issue without incurring the £500 FOS fee. In your case, the firm had a choice to pay you £96 as a goodwill gesture or pay £500 to the FOS and you dont get a penny. Logically they would have taken the cheaper option.

jesusjuice

Thanks all.

Dunstonh, I doubt I'd have much luck specifying what I believe the true cost of my late payment is, although the only difference I see is the extra cost of printer toner to write "OVERLIMIT FEE £12.00" on my statement. I fail to see what staff costs that invokes either.

I heard that the banks were unwilling to go to court lest the true cost of going over the limit be revealed but the FOS seem to be happy with the figures Halifax have given to them.

Maxzorin, it's nice to hear something encouraging. The only thing is the person I've got a response from is satisfied the fees are fair.

I will write asking to see a copy of this cost breakdown and if I find it unsatisfactory I will ask an adjudicator to look at the case.

Cheers all

dunstonh

Dunstonh, I doubt I'd have much luck specifying what I believe the true cost of my late payment is, although the only difference I see is the extra cost of printer toner to write "OVERLIMIT FEE £12.00" on my statement. I fail to see what staff costs that invokes either.

It does involve staff as someone has to look at your account and decide what action to take.

I heard that the banks were unwilling to go to court lest the true cost of going over the limit be revealed but the FOS seem to be happy with the figures Halifax have given to them.

Yes, there has been success by those threatening court action. That sort of thing doesnt work with the FOS.

jesusjuice

dunstonh wrote: »

It does involve staff as someone has to look at your account and decide what action to take.

Well I learnt something new today, thanks. Seeing as the fee is always applied and always the same I can't imagine slapping the fee on to cost too much in terms of employee's wages to be paid out as a result of my non payment though.

dunstonh wrote: »

Yes, there has been success by those threatening court action. That sort of thing doesnt work with the FOS.

So the banks are happy to give a breakdown of costs to the FOS but they don't want the breakdown of costs to be made public, is that the case? I've asked for a breakdown in the letter I wrote last night.