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charge for missed d debits?
aggypanthus
Posts: 1,579 Forumite
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.
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.
0
Comments
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The £12 refers to charges made by the bank/card company, not those made by the insurance company. Who actually made the charge?0
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The ins company have their money, its a credit agreement which pays them via our monthly payments. Ie the credit company are chargeing us.0
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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.0 -
Not clear how you can 'miss' DD payments0
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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.0 -
Thanks guys.
I Can now look into it further.0 -
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.0 -
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.0 -
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.0 -
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...0
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