Catalogue Charges

MrsManson

Hi

I wonder if someone can help with the reply I received in my claim for catalogue charges.

I wrote to Fashion World through the advice and letter guidance via this website, asking them to repay the late payment charges on my account. Now although I have had the account for many years, it was only at the beginning of the account that I incurred these charges. My payments over the past few years have been on time and in full. So there has been no late repayment charges recently.

I am however claiming for any late payment charges added to the account since its inception.

Anyway, I am not sure how much these late payment fees were, could be £12, could be more because I don't have access to statements during this period.

They have since wrote back to me stating this:

"In their Statement of April 2006, the Office of Fair Trading (OFT) set out their views on the general principles that credit card providers should apply when calculating the charges that they make when a customer fails to make a payment on time under a credit card agreement. The OFT did say that banks and other finance businesses should consider those principles when setting similar default charges for other types of financial products.

However in setting the £12 threshold figure of default charges in relation to credit cards, the OFT said that this an interim measure to move the credit card industry towards compliance. The OFT did not say that the £12 threshold was applicable to other types of consumer agreement and have not set a threshold sum or maximum figure for default charges under other types of agreement, such as the one we have with you.

In the circumstances we are not prepared to make a refund of charges. I am sure you will appreciate that when you fault to pay the money you owe us when it is due we incur costs and expenses as a result. We continue to be of the view that the charges that we made in your case are justifiable, and not a penalty. In addition, the level of charges applied to your account are in accordance with the OFT guidance given in relation to credit cards (as detailed above)."

They also went on to say that my account has now been placed in the hands of Reliable Collections.

Firstly, I want to ask, is it correct what they are telling me, in that I don't have a claim against them?

Secondly, do they have a right to place my account into the hands of Reliable Collections, when my account is up-to-date and has been for a while with no missed or late payments?

Thirdly, will this affect my credit rating?

Any advice on this is, as always, much appreciated.

MM

tomtontom

You do not have a legal right to reclaim charges.

It sounds like they no longer want your business. Best to pay off anything owed and go elsewhere.

Aquamania

MrsManson wrote: »

Hi

I wonder if someone can help with the reply I received in my claim for catalogue charges.

I wrote to Fashion World through the advice and letter guidance via this website, asking them to repay the late payment charges on my account. Now although I have had the account for many years, it was only at the beginning of the account that I incurred these charges. My payments over the past few years have been on time and in full. So there has been no late repayment charges recently.

I am however claiming for any late payment charges added to the account since its inception.

Anyway, I am not sure how much these late payment fees were, could be £12, could be more because I don't have access to statements during this period.

They have since wrote back to me stating this:

"In their Statement of April 2006, the Office of Fair Trading (OFT) set out their views on the general principles that credit card providers should apply when calculating the charges that they make when a customer fails to make a payment on time under a credit card agreement. The OFT did say that banks and other finance businesses should consider those principles when setting similar default charges for other types of financial products.

However in setting the £12 threshold figure of default charges in relation to credit cards, the OFT said that this an interim measure to move the credit card industry towards compliance. The OFT did not say that the £12 threshold was applicable to other types of consumer agreement and have not set a threshold sum or maximum figure for default charges under other types of agreement, such as the one we have with you.

In the circumstances we are not prepared to make a refund of charges. I am sure you will appreciate that when you fault to pay the money you owe us when it is due we incur costs and expenses as a result. We continue to be of the view that the charges that we made in your case are justifiable, and not a penalty. In addition, the level of charges applied to your account are in accordance with the OFT guidance given in relation to credit cards (as detailed above)."

They also went on to say that my account has now been placed in the hands of Reliable Collections.

Firstly, I want to ask, is it correct what they are telling me, in that I don't have a claim against them?

Secondly, do they have a right to place my account into the hands of Reliable Collections, when my account is up-to-date and has been for a while with no missed or late payments?

Thirdly, will this affect my credit rating?

Any advice on this is, as always, much appreciated.

MM

Well, whilst the OFT may have made their report based on credit card charges, many people have since gone on to successfully recover unfair catalogue charges using the same procedure.

It is true that with regards the £12 limit, amounts over which are automatically regarded as unfair, it may be that certain providers can indeed justify charges (and therefore be allowed) charges in excess of £12. Egg card was one such provider who I believe have justified since the OFT report their charges of £16 as being fair.

However, don't give up. I would suggest that if this is their final decision in the matter (or 8 weeks have passed since you started your complaint) you take advantage of the FOS. It's free for you to use and the worst they can do is not uphold your complaint.

Even if that occurs, and you still believe the charges to be unfair, then you still have the right to ask a court to decide upon the matter (this will incur in costs, but if you win, I would fully expect you to be able to recover these too).
Having said that, chances are if the FOS don't uphold your complaint, I fear you will have an uphill struggle trying to get another independent body (i.e. the court) to uphold it. But only you can make that call.

Just follow the guide to reclaiming unfair credit card charges, making any appropriate amendments