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    • DABRadio
    • By DABRadio 13th Jan 18, 9:30 PM
    • 251Posts
    • 92Thanks
    DABRadio
    Credit Card Charges Query
    • #1
    • 13th Jan 18, 9:30 PM
    Credit Card Charges Query 13th Jan 18 at 9:30 PM
    With the banned credit card charges coming into effect today, does that also mean late payment fees too?
Page 1
    • zx81
    • By zx81 13th Jan 18, 9:32 PM
    • 17,284 Posts
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    zx81
    • #2
    • 13th Jan 18, 9:32 PM
    • #2
    • 13th Jan 18, 9:32 PM
    No.

    But there's an easy way to avoid them.

    Don't pay late.
    • sourcrates
    • By sourcrates 13th Jan 18, 10:37 PM
    • 14,365 Posts
    • 13,548 Thanks
    sourcrates
    • #3
    • 13th Jan 18, 10:37 PM
    • #3
    • 13th Jan 18, 10:37 PM
    With the banned credit card charges coming into effect today, does that also mean late payment fees too?
    Originally posted by DABRadio
    No itís an entirely separate issue.

    Think yourself lucky, they used to be much higher, £35.00 per charge, so if you paid late, £35 quid, if that in turn took you over your credit limit, another £35 quid.

    Barclaycard once admitted that over 45% of there gross annual profits came from account charges.
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    • chattychappy
    • By chattychappy 14th Jan 18, 11:01 AM
    • 6,809 Posts
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    chattychappy
    • #4
    • 14th Jan 18, 11:01 AM
    • #4
    • 14th Jan 18, 11:01 AM
    No it!!!8217;s an entirely separate issue.

    Think yourself lucky, they used to be much higher, £35.00 per charge, so if you paid late, £35 quid, if that in turn took you over your credit limit, another £35 quid.

    Barclaycard once admitted that over 45% of there gross annual profits came from account charges.
    Originally posted by sourcrates
    It was an object lesson in "just because you've signed on the dotted line doesn't mean your bound by it".

    Originally it was a law student who started the challenge which the OFT (the then regulator) took over. Having studied the UTCCR1999 regs on penalty charges in a class, he wondered how his CC could get away with charging so much for a missed payment. The law was clear: penalties are limited to (a fair estimate) of what the breach costs an injured party. Ie you can't profit from a penalty charged imposed for a breach of contract.

    The OFT concluded that for charges above £12 they would presume the charge was unlawful and they would investigate. For £12 they wouldn't investigate. They were clear that what was lawful would depend on the particular case - a fee above £12 could be lawful, a fee of under £12 could be unlawful. £12 was not meant to be a one size fits all, but of course it has become a defacto standard.

    My guess is that in many cases £12 is dubious. In the "old" days you would always get a letter and perhaps a phone call. Now you get little more than a note on your next statement which you probably have to download anyway.

    Anyone wanting to dispute such a charge should do so by challenging their lender to demonstrate how they incurred costs of £12 as a result of the breach. Of course in many cases they will refund as a goodwill gesture anyway.
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