charge for missed d debits?

aggypanthus
aggypanthus Posts: 1,579 Forumite
Combo Breaker First Post
in Credit cards
Am I right in thinking that companies are only allowed to charge £12 per missed payment?

We missed to dd payments to the credit company to whom we pay car ins, and they charged 2o each time, can I challenge this ammount?
Thanks.

Comments

  • dzug1
    dzug1 Posts: 13,535 Forumite
    First Post Combo Breaker
    The £12 refers to charges made by the bank/card company, not those made by the insurance company. Who actually made the charge?
  • aggypanthus
    aggypanthus Posts: 1,579 Forumite
    Combo Breaker First Post
    The ins company have their money, its a credit agreement which pays them via our monthly payments. Ie the credit company are chargeing us.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Name Dropper Photogenic First Anniversary First Post
    aggypanthus wrote: »
    We missed to dd payments to the credit company to whom we pay car ins, and they charged 2o each time, can I challenge this ammount?

    Not if the charges are clearly laid out in the finance agreement you signed.
  • dzug1
    dzug1 Posts: 13,535 Forumite
    First Post Combo Breaker
    Not clear how you can 'miss' DD payments
  • chattychappy
    chattychappy Posts: 7,302 Forumite
    Thrugelmir wrote: »
    Not if the charges are clearly laid out in the finance agreement you signed.

    Penalty charges are not enforceable if they exceed the cost of the breach to the injured party. Arguing it can be a different matter, of course.

    Just because something is "clearly laid out" in the T+Cs, doesn't make it enforceable.
  • aggypanthus
    aggypanthus Posts: 1,579 Forumite
    Combo Breaker First Post
    Thanks guys.

    I Can now look into it further.
  • thebritishbloke
    thebritishbloke Posts: 1,472 Forumite
    chattychappy wrote: »
    Penalty charges are not enforceable if they exceed the cost of the breach to the injured party. Arguing it can be a different matter, of course.

    Just because something is "clearly laid out" in the T+Cs, doesn't make it enforceable.

    Apart from the fact that a £12 fee for a missed DD is an industry standard fee.
    Credit 'Score' - Don't buy the credit 'score' that Experian, Equifax and Noddle want to sell you. It's an arbitrary number that means nothing when it comes to applying for credit.

    ALWAYS HAVE A DIRECT DEBIT SET UP FOR THE MINIMUM PAYMENT ON YOUR CREDIT CARDS, REGARDLESS OF WHETHER YOU PLAN TO LOGIN AND PAY EACH MONTH.
  • MPH80
    MPH80 Posts: 973 Forumite
    thebritishbloke wrote: »
    Apart from the fact that a £12 fee for a missed DD is an industry standard fee.

    The £12 amount came about when it was suggested that this might not be considered unreasonable for the banks to charge.

    However, that was based on the bank's effort. E.g. they have automated systems that decide, or not, what to do about the payment.

    The credit company, on the other hand, have a larger cost associated with the bounced payment - they have to follow up - probably manually - with the customer, chase etc.

    For them to argue £20 wouldn't be hard. Sounds cheap if you think about the effort for them to chase the customer.
  • aggypanthus
    aggypanthus Posts: 1,579 Forumite
    Combo Breaker First Post
    MPH80 wrote: »
    The £12 amount came about when it was suggested that this might not be considered unreasonable for the banks to charge.

    However, that was based on the bank's effort. E.g. they have automated systems that decide, or not, what to do about the payment.

    The credit company, on the other hand, have a larger cost associated with the bounced payment - they have to follow up - probably manually - with the customer, chase etc.

    For them to argue £20 wouldn't be hard. Sounds cheap if you think about the effort for them to chase the customer.

    What do you mean manually? They sent a letter, as do banks, they tried to get the payment on another date, seems easy enough.
    It wasnt hard to chase me lol, I hadnt allowed enough time for a paid in ch to clear to cover it.

    Actually, when I last had an actual credit card, there charge WAS £12.

    I say again its not a credit card, but a credit company who finance ins payments.
  • chattychappy
    chattychappy Posts: 7,302 Forumite
    thebritishbloke wrote: »
    Apart from the fact that a £12 fee for a missed DD is an industry standard fee.

    There was a time when £20 (or more) was "industry standard". As was selling PPI. As was cardholder protection policies...
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

Categories

  • All Categories
  • 343.2K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.7K Spending & Discounts
  • 235.3K Work, Benefits & Business
  • 608K Mortgages, Homes & Bills
  • 173.1K Life & Family
  • 247.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards