Legal to charge Surcharge for Direct Debits

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srp973
srp973 Posts: 2 Newbie
in Reclaim mortgage fees, council tax, etc
Private Sports Club that I am looking to join charges a 5% surcharge on the Annual subscription cost in order to pay by 12 monthly direct debits.

Is this legal? I also know someone who has been a member for a number of years and wonder whether, if it is is illegal, the additional costs can be claimed back.

Thanks for the advice,

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  • foxtrotoscar_2
    foxtrotoscar_2 Posts: 1,717 Forumite
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    srp973 wrote: »
    Private Sports Club that I am looking to join charges a 5% surcharge on the Annual subscription cost in order to pay by 12 monthly direct debits.

    Is this legal? I also know someone who has been a member for a number of years and wonder whether, if it is is illegal, the additional costs can be claimed back.

    Thanks for the advice,



    Perfectly legal. What ever makes you think it is not?
  • srp973
    srp973 Posts: 2 Newbie
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    “The good news is that they clarified that clubs may offer a direct debit facility to members, without requiring FCA Authorisation, provided the agreement runs for no longer than 12 months. However, it was emphasised that no charge of any kind can be made against the member for this service.
  • foxtrotoscar_2
    foxtrotoscar_2 Posts: 1,717 Forumite
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    srp973 wrote: »
    “The good news is that they clarified that clubs may offer a direct debit facility to members, without requiring FCA Authorisation, provided the agreement runs for no longer than 12 months. However, it was emphasised that no charge of any kind can be made against the member for this service.



    Random words from where exactly and why do you think it relevant. Lots of institutions charge more for paying over 12 months rather than up front. TV licence, most insurances...and so on.
  • SonOf
    SonOf Posts: 2,631 Forumite
    First Anniversary First Post
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    “The good news is that they clarified that clubs may offer a direct debit facility to members, without requiring FCA Authorisation, provided the agreement runs for no longer than 12 months. However, it was emphasised that no charge of any kind can be made against the member for this service.

    If it is for longer than 12 months then they need to apply for a consumer credit licence from the FCA. If its 12 or fewer months then then authorisation is not required.

    They cannot charge interest. However, they can charge an admin fee.
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