Penalty Fees

goldConsidered

A slightly different slant on the unfair bank charges crusade. I opened an account with a company which sells foreign currencies and transmits them to a named beneficiary account anywhere in the world (Foreign Currency Direct plc, www.currencies.co.uk). When I opened my account with them I signed up to their terms and conditions (which are posted on their website). When I undertook a deal recently, my payment reached them 7 days after the due date. The company refused to transmit my funds unless I paid a penalty fee of £175 (equivalent to £25 per day). The terms and conditions make no reference to such penalty fees, only daily interest charges of 3 percentage points above the Bank of England base rates. The dealsheet however says a £25 penalty per day may be payable in the event the payment reaches the company after the due date.

Does anyone know whether this may be another illegal, or unfair charge, and how I can contest such charges?

Stokey125

goldConsidered wrote: »

A slightly different slant on the unfair bank charges crusade. I opened an account with a company which sells foreign currencies and transmits them to a named beneficiary account anywhere in the world (Foreign Currency Direct plc, www.currencies.co.uk). When I opened my account with them I signed up to their terms and conditions (which are posted on their website). When I undertook a deal recently, my payment reached them 7 days after the due date. The company refused to transmit my funds unless I paid a penalty fee of £175 (equivalent to £25 per day). The terms and conditions make no reference to such penalty fees, only daily interest charges of 3 percentage points above the Bank of England base rates. The dealsheet however says a £25 penalty per day may be payable in the event the payment reaches the company after the due date.

Does anyone know whether this may be another illegal, or unfair charge, and how I can contest such charges?

You are going to need expert advice on that one as I can see a clash of at least two principles of contract law and how they apply would depend on the full facts and a carefull reading of all teh dcoumnets.