Reclaim Credit Card Charges
What Credit Card Charges can be claimed back?
Credit card and store card providers in the UK continue to hit their consumers with unfair credit card charges. The good news is most these charges can be claimed back, with interest!
So what charges can you claim back?
The Office of Fair Trading (OFT) states that unfair credit card charges include failure to pay a minimum payment on the due date, exceeding a credit limit or a failure to honour a payment made. The OFT describes a fair default charge as one that does not exceed a reasonable estimate for administrative costs that the credit card issuer may incur. The office of fair trading has set the limits for credit card charges at £12. If you have been charged over £12 for late payment charges, over credit charges or returned payment charges then you will be able to claim this back.
How far back can you claim?
If you reside in England or Wales you can claim back credit card charges for the last six years (five years for Scottish credit card users) so long as you have a statement of record for all the fines charged on each credit card account. It may be the case that you don’t have a copy of all your credit card statements and charges for the last six years. If you fit into this category then you will have to write to your credit card provider and request a list of all past credit card charges. Unfortunately credit card companies are allowed to charge admin costs for sending you the data, the maximum they can charge is £10.
How much can you claim back?
Credit card providers on average charge fee of between £30 -35 for late payments, being over credit or for a returned payment. You will be able to claim for the full amount of each charge or the difference between the charge and the recommended fee of £12, recommended by the OFT. For example, a credit card charge of £30 minus the OFT recommended fee of £12 will give you a refund of £18.
Credit card companies are most likely to pay the difference between the OFT fair fee and their original credit card charge. Alternatively, there are many cases of people claiming back the full fee as credit card companies are eager to avoid court cases, bad publicity and explaining and justifying their charges in the public domain.
On top of claiming back your unfair credit card fees, you are also entitled to claim back 8% interest from the date you were first charged an unfair fee.
So what charges can you claim back?
The Office of Fair Trading (OFT) states that unfair credit card charges include failure to pay a minimum payment on the due date, exceeding a credit limit or a failure to honour a payment made. The OFT describes a fair default charge as one that does not exceed a reasonable estimate for administrative costs that the credit card issuer may incur. The office of fair trading has set the limits for credit card charges at £12. If you have been charged over £12 for late payment charges, over credit charges or returned payment charges then you will be able to claim this back.
How far back can you claim?
If you reside in England or Wales you can claim back credit card charges for the last six years (five years for Scottish credit card users) so long as you have a statement of record for all the fines charged on each credit card account. It may be the case that you don’t have a copy of all your credit card statements and charges for the last six years. If you fit into this category then you will have to write to your credit card provider and request a list of all past credit card charges. Unfortunately credit card companies are allowed to charge admin costs for sending you the data, the maximum they can charge is £10.
How much can you claim back?
Credit card providers on average charge fee of between £30 -35 for late payments, being over credit or for a returned payment. You will be able to claim for the full amount of each charge or the difference between the charge and the recommended fee of £12, recommended by the OFT. For example, a credit card charge of £30 minus the OFT recommended fee of £12 will give you a refund of £18.
Credit card companies are most likely to pay the difference between the OFT fair fee and their original credit card charge. Alternatively, there are many cases of people claiming back the full fee as credit card companies are eager to avoid court cases, bad publicity and explaining and justifying their charges in the public domain.
On top of claiming back your unfair credit card fees, you are also entitled to claim back 8% interest from the date you were first charged an unfair fee.
