missed payment penalties

engcbw

I've just been landed with a £20 charge for missing my Lloyds TSB credit card payment by 2 days. I begged their forgiveness but they refused a refund on the grounds that they had once before (in my 20 year history with them) refunded me a late charge. Does anyone out there know of a good credit card that isn't so mean???

rinoa778

How come your payment was late? Did you send it off in time? Maybe you should look for a card with a longer interest free period (59 days instead of 56?) Or even better, set up a direct debit so you don't have to worry about paying it on time (just make sure you have sufficient money to cover it)
This sounds harsh, but they have to make money somewhere so that's why they're being very strict with their rules.

Smitty

This sounds harsh, but they have to make money somewhere so that's why they're being very strict with their rules.

yes, but if engcbw has been with Lloyds TSB for 20 years and usually pays his debt on time then this is very mean.
It really depends what you want to use your CC for engcbw, if you intend to always pay the full amount off each month then a card with a high % of money back is probably the one for you.
Have a read of Martin's article

http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1095885775,24950,

eminem12011976

According to an article in the Guardian a few Saturdays ago, you do not legally have to pay late payment fees. The issuer can ONLY in law ask you to pay the cost to them of you going over your limit etc. This relates to a case in the 1920s where the ford motor company charged dealers for discounting cars. In court it was decided that the dealership selling at discount was only liable to the costs actually incured by Ford. The article suggested that if you tell the company you refuse to pay that they will waive the charge rarther than argue.

Very interesting.

I'm not a lawyer and only read the Guardian on a Saturday so there goes

Robert_Sterling_3

But you sign up to say that you accept the terms & conditions.

If you have generated profit to the company they should refund the fee.

I would write to them ....

Dear sir or madam
I have held your Credit Card for more than 20 years.
Recently for only the second time in 20 years I made a payment which was 2 days late.
Whilst I accept that you are fully entitled to add £20 to my outstanding balance nevertheless I invite you to also subtract £20 from my outstanding balance as a gesture of goodwill.
If you do not have sufficient authority to agree to my request or if you do have such authority but choose not to use it then please pass my request to someone who has greater authority than yourself.

Yours etc.

Notes.

You agree that what they are doing is their right.
You invite them to make an "Ex Gratia" payment thus again you accept that they do not have to repay you.
You allow them to pas the buck if appropriate.

zcaprd7

eminem12011976,

You are right, lenders aren't allowed to 'penalise' you for going over limit - they may recoup any money they have lost (so you pay them back) but are not allowed to charge you extra fines - its like them taking the law into their own hands and fining you!

Many people don't know this (including everyone who works at a credit card call centre), many are too scared to kick up a fuss, and so many people accept the terms and conditions because they signed up to them, as if they are the law - which are meaningless if the t&cs were illegal to start with...

Robert_Sterling_3

you do not have to pay any fines ... Fine
They do not have to issue you with a Credit Card ... Fine
I still think my specimen letter helps.
I have often used a similar letter to good effect.

Debt_Free_Chick

Robert Sterling has a good point

I still think my specimen letter helps.
I have often used a similar letter to good effect.

Call centre staff generally have authority to refund the charge, but only the first time you miss a payment.

Send the letter. You have nothing to lose.

If they don't refund then you can consider disputing the legality of the charge. At the moment, they've added it to your account. Your priority is to get it back, not embark on a career as a barrack room lawyer!

covickovic

Robert Shilling's letter is excellent...
Also, I have noticed that Barclaycard repayment dates come far too early in a month so do watch out!