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soon as it becomes available. |
Credit Card News
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Late Payment Charges To Be Capped At £12
The Office of Fair Trading, also known as OFT have ruled that credit card
companies only be able to charge a maximum fee of £12 for late payment of credit
card bills. The OFT believes that the current charges for late payments of
credit card bills which are typically between £20 and £25 - to be excessive and
unfair. The Office of Fair Trading have ruled that in future, credit card
customers should only be charged for the actual administration costs incurred
when processing late payments such as postage and stationery. The OFT also
ruled that penalty charges are illegal as they breach the 1999 Unfair Terms in
Consumer Contracts Regulations. A section of the statement from the OFT included
"credit card default charges have generally been set at a significantly higher
level than is legally fair". The OFT stated its ruling on charges would
collectively save consumers a minimum of £300 million. Legal proceedings to
enforce the £12 cap are now underway following time allowed enabling the credit
card industry to respond to the statement. |
