The Law Applied To Bank and Credit Card Charges
This law has recently been of great interest to UK bank and credit card customers who have been charged as much as £39 for a single transaction that took them over their credit limit. Consumers argued these charges were well beyond the cost of sending a computerised letter.
In 2007 the Office of Fair Trading investigated the excessively high charges being imposed on customers of credit card companies. In its report, the OFT confirmed these charges were unlawful under UK Law as they amounted to a penalty. It said it would be prepared to investigate any charge over £12, though this was not intended to indicate that £12 is a fair and acceptable charge. The OFT said it would be up to a court to determine such an amount based on the established legal precedent that the only recoverable cost would be actual costs incurred.
The credit card companies did not produce evidence of their actual costs to the OFT, instead insisting their charges are in line with clear policy and information provided to customers.
Following the ruling, many bank customers have made County Court claims against their banks and credit card companies for return of penalty charges for returned cheques, direct debits and unauthorized overdraft charges. To date no bank or credit card company, save NatWest on one occasion, has attended at Court for a Trial.
- OFT v Abbey
Read more about this topic: Liquidated Damages
Famous quotes containing the words law, applied, bank, credit, card and/or charges:
“What, then, is the true Gospel of consistency? Change. Who is the really consistent man? The man who changes. Since change is the law of his being, he cannot be consistent if he stick in a rut.”
—Mark Twain [Samuel Langhorne Clemens] (1835–1910)
““The worst reporter, even for his age, in New York,” was the affectionate epithet applied to me.”
—Robert Benchley (1889–1945)
“A self is, by its very essence, a being with a past. One must look lengthwise backwards in the stream of time in order to see the self, or its shadow, now moving with the stream, now eddying in the currents from bank to bank of its channel, and now strenuously straining onwards in the pursuit of its chosen good.”
—Josiah Royce (1855–1916)
“To give money to a sufferer is only a come-off. It is only a postponement of the real payment, a bribe paid for silence, a credit system in which a paper promise to pay answers for the time instead of liquidation. We owe to man higher succors than food and fire. We owe to man.”
—Ralph Waldo Emerson (1803–1882)
“What is the disease which manifests itself in an inability to leave a party—any party at all—until it is all over and the lights are being put out?... I suppose that part of this mania for staying is due to a fear that, if I go, something good will happen and I’ll miss it. Somebody might do card tricks, or shoot somebody else.”
—Robert Benchley (1889–1945)
“I have never injured anybody with a mordant poem; my
verse contains charges against nobody. Ingenuous, I have
shunned wit steeped in venom—not a letter of mine is dipped
in poisonous jest.”
—Ovid (Publius Ovidius Naso)