If you have ever had a credit card then you have probably, at some point, incurred some kind of penalty fee or charge. These kind of charges can be frustrating especially as they are usually applied directly to your account so you do not have the option to discuss the matter with your lender first.
In 2006 The Office of Fair Trading investigated bank charges applied to credit cards for late payments and over the limit fees. It was found that in some cases lenders were applying fees of up to £35 for these charges. The fees were also applied automatically regardless of whether the customer was just a few pounds over their agreed limit or just a day or two late making their payment. Some debt charities had criticised these type of charges as they often penalised the most financially vulnerable with the same group of customers incurring charges repeatedly.
During their investigation, the Office of Fair Trading sought to establish a ‘fair’ charge for late payments and over the limit fees. Lenders tried to justify existing charges by claiming they were necessary to cover the costs incurred when customers made a late payment or exceeded their limit. The Office of Fair Trading rejected this idea, though, claiming that £12 was the maximum fee that should be levied for these type of bank charges.
Since the investigation, most lenders have lowered their fees, but many customers still feel angry that, for many years, they were forced to pay charges now found to be unfair. If you have paid these fees in the past you now have the right to make a claim. Many customers have already received bank charges refunds worth hundreds of pounds and you could join them. There is no limit to the number of claims you could make and you can even register a complaint if you have paid off your card or closed your account.
To find out more about registering your claim or to get started complete our quick claim form.