Credit Card late payment charges

Lindawh

Hi, those dreaded charges for late payment on credit cards- has anyone been sucessful in reclaiming them back and how do you go about it.... :mad:

The_Boss

Cant answer your question, but there's one way to reclaim the charges in future before they even happen : Pay on time, pay the correct amount and dont go over limits.

virgin_moneysaver

as the credit card companies have been forced to reduce their charge to around #12, which has been deemed a fair price by the ombudsman, you don't stand much of a chance - & seeing as they send you the bill about a fortnight before its due I can't see why anyone would pay late - best bet set up a d/d for the minimum amount & you won't get caught again

jamalfatty

virgin_moneysaver wrote:

as the credit card companies have been forced to reduce their charge to around #12, which has been deemed a fair price by the ombudsman, you don't stand much of a chance

This still doesnt change the fact they are disproportionate to what it actually costs the bank so you can still reclaim all of them for last 6 years.

The OFT did not say that £12 was a fair charge, just that it would take action against any company (except Egg) that charged above this threshold.
It is still up to the banks to demonstrate that it actually costs them this much if you break the T&C's of your account, which they wouldnt be able to as there is no way it does.

RCA_2

late payment charges are there for a reason, to try and encourage people to make regular payments to their account. i'm sure you'll agree that if there was a situation where people were allowed to just make payments whenever they wanted then they would be in serious debt especially those who only pay the minimum payments anyway and who are paying interest. how much does it really cost the bank? i'd guess a hell of a lot less than £12, but there again if the charge was a pound for example then they wouldn't be as effective.

jamalfatty

RCA wrote:

late payment charges are there for a reason, to try and encourage people to make regular payments to their account.

Can you honestly say you believe that?! They are there purely and simply as a profit-making scheme. Do you think the banks would encourage people to make regular payments onto an account if they didnt have to? The longer and bigger a debt on an account, the more interest, ergo, profit the bank makes.

RCA_2

legally minimum payments are required to be made. therefore there is a need to ensure that those payments are made and the only way to do so is to have some sort of negative consequence if they are not. if you know of any other viable way of doing that then feel free free to suggest it.

jamalfatty

RCA wrote:

legally minimum payments are required to be made. therefore there is a need to ensure that those payments are made and the only way to do so is to have some sort of negative consequence if they are not. if you know of any other viable way of doing that then feel free free to suggest it.

Yes I can, its called a credit agreement, and its signed at the outset to say that the consumer will repay what is requested each month. It is assumed that as this is a legally binding contract that it would be adhered to, obviously we all know that isnt always the case though.

If the fee's are purely there to discourage late payments etc, and not as a profit making scheme, is just then purely coincedental that there is a lot of talk about the end of free banking when the OFT is set to rule in next 8 weeks that they are far too high at moment?

RCA_2

jamalfatty wrote:

Yes I can, its called a credit agreement, and its signed at the outset to say that the consumer will repay what is requested each month. It is assumed that as this is a legally binding contract that it would be adhered to, obviously we all know that isnt always the case though.

If the fee's are purely there to discourage late payments etc, and not as a profit making scheme, is just then purely coincedental that there is a lot of talk about the end of free banking when the OFT is set to rule in next 8 weeks that they are far too high at moment?

we have a hell of a lot of people who get charged each month, are you suggesting that they be taken to court for breach of contact? there would be very few customers left and would be at a great cost to both the customer and the card issuer. surely its much easier to stick on a £12 charge?

jamalfatty

RCA wrote:

we have a hell of a lot of people who get charged each month, are you suggesting that they be taken to court for breach of contact? there would be very few customers left and would be at a great cost to both the customer and the card issuer. surely its much easier to stick on a £12 charge?

No because the system we have in the UK is for these late payments and defaults to be reported to the CRA's, which in itself should serve as a deterrent.

I'm not disputing the fact that these penalties serve as a deterrent, just that they are not there first and foremost for that reason, as I said, at the moment they provide a huge revenue stream for the banks, who lets not forget, are a business and have shareholders to keep happy so will do anything to maximise the bottom line.

benadesign84

hi, im new to this site, but have some regrettable memories of one particular credit card i had. I need to know if i can claim the charges back, as i did get charged a lot. The previous posts werent too sure about this. Also, my credit card was cancelled and i tore up and binned my statements, can anyone help? i will appreciate it greatly. thx!