OFT Late Payment Fine Crack Down May Hurt Consumers!

branney

cport80 wrote:

It would be much fairer if they charged a small amount per day (like libraries do for books). Then the level of charge is proportionate to the level of priority the individual gives to making the payment.

agreed. i would be willing to pay double the interest rate for the minimum payment due for those 'late days', and perhaps a higher interest rate on the remainder of the balance, until the minimum payment has been received.

Rafter

Responding to Wallet Watch, I guess the problem is that fees are not included in the APR calculation. And how many people honestly read and understand the whole summary box?

I think a £5 fee in the first instance, plus the interest seems to be a fair deal, then after that a £5 fee and a penalty interest charge, so the 'fine' is proportional to the amount borrowed (and the amount the bank has at risk of possibly not being repaid if someone isn't managing their finances well).

I'm curious though, if I park in a pay and display car park and am 5 minutes late getting back to my car and get slapped with a £20 fine, is that reasonable too?

Or can I simply send the 80p cost of the additional hours parking which is the real loss, plus £2 to cover the cost of the paper ticket and the time taken by the warden to write it?

Surely if I pay any more it is an unfair contract term and profiteering on the part of the council or parking company?

R.

PS. Thankfully I live in a really progressive town where, if you do get a Pay and Display fine you can simply buy £3 of tickets, stick to the fine and post in an honesty box by the machine - much fairer, although my council tax is probably higher than towns that use this as a major revenue earner.