Break T+Cs = lose promo deal: thing of the past?

chattychappy

Regulars will know that it is standard practice that you lose your promo deal (0% on BTs or whatever) if you break the T+Cs. Typically people forget to pay on time - this can be an expensive "gotcha".

I have sometimes speculated that this practice might well be unsustainable, though to my knowledge no court has ever ruled on it. My reasoning is that it amounts to a disguised form of penalty. Penalties are not meant to exceed the cost of the breach to the injured party. And/or, it is simply a disproportionate and unfair response to a breach which is being separately charged for anyway. The FCA is likely to be tougher in area of "treating customers fairly" than the OFT was. (The FCA took over 1st April.)

Anyway, posters have had some success in phoning up and pleading - CCs sometimes re-instate the deal. I suspect that this is one reason why it's never been challenged legally: the CC has always done a deal before it got that far.

Well, I just received an update to my Santander Zero T+Cs. Most of the changes are the usual mundane stuff. But one change is that they are removing the condition that allows them to end a promotional deal for a breach of T+Cs. By coincidence the following day I received a BT offer. I wondered if they had inserted a similar provision into the offer itself. But the offer makes no reference to early termination of the deal in the event of a breach of T+Cs.

It will be interesting to see if other CCs make a similar change.

GingerBob_3

MBNA are bad for this, but as you say, you can "plead" with them, but usually only once. Second breach and that's it. From what I recall, the Post Office credit card do not do this, so maybe others don't either. I can't recall exactly what happens if you forget a payment with the PO - whether you pay interest for the single month, perhaps, and the £12 "fine", but there was no permanent loss of the promo rate.

Anyway, from what you say, it sounds like good news.

Stoneman_2

Sounds like a good move.

I was caught out by barclaycard a long time ago as I missed my first payment. Didn't bother to contact them to plead for forgiveness as the limit was only £800

They might not be able to take away the 0% offer, but does it say anything about them being able to terminate the account and ask for the money back? Just thinking that they will sting you another way