Rip off card-charges banned

[EXC]

Rip-off card charges will be consigned to history, after Ministers act to end these unfair fees for millions of people across the country.

The government is unveiling new rules that will mean card-charging in Britain - where people can be charged 20% extra for purchases like a flight just for paying with a credit card - will come to an end in January.

‘Surcharging’ is common practice across the country - with businesses ranging from takeaway apps to global airlines charging people to make card payments or for other services such as Paypal. While many industries have acted to absorb the cost and not pass these on to consumers, these rules will bring an end to the practice entirely.

The rules will also tackle surcharging by local councils and government agencies.

In 2010, the total value of surcharges for debit and credit cards was an estimated £473 million. The Economic Secretary to the Treasury, Stephen Barclay, said:

“Rip-off charges have no place in a modern Britain and that’s why card charging in Britain is about to come to an end.''

“This is about fairness and transparency, and so from next year there will be no more nasty surprises for people at the check-out just for using a card.''

“These small charges can really add up and this change will mean shoppers across the country have that bit of extra cash to spend on the things that matter to them.”

The government has previously capped the costs that businesses face for processing card payments, and will engage with retailers to asses if there is any more that can be done to help.

This action forms part of our wider help for families with the cost of living by helping to raise their incomes and keep more of what they earn.

https://www.gov.uk/government/news/r...to-be-outlawed

[EXC]

Re: Rip off card-charges banned

Consultation response https://www.gov.uk/government/consul...irective-psdii

There was bound to be some bad news...

Q10. Do you agree that the government should extend the right of termination to overdrawn current accounts?

5.2 The majority of respondents to this question disagreed with extending the customer’s right of termination to overdrawn current accounts. Those who were in favour noted that it reflects current arrangements in the Current Account Switching Service (CASS).

5.3 Some respondents who disagreed had concerns regarding the cost of debt collection when relying on contractual rights to recover debt once a contract has been terminated, and thought such arrangements could lead to confusion, with consumers thinking that they could terminate an agreement and leave their debt behind.

Further comments
5.4 Respondents also had concerns that the implementation of the PSDII is not the appropriate place to make this change, as well as raising concerns that other proposals in the regulations, which sought to clarify the relationship between the PSDII and the CCA would lead to confusion.

Government response
5.5 The government welcomes the feedback it received from industry on this question, and following further engagement with industry and CASS, has concluded that the market is working sufficiently well regarding the termination of overdrawn current accounts and that there is no need for an explicit right of termination at this point in time.

5.6 In response to feedback from respondents, the government has also decided to limit the extent of other proposals which seek to clarify the relationship between the PSDII and the CCA, but to proceed with those on information and transparency requirements, bearing in mind the need to ensure compatibility with the PSDII.

The problem with this is as the Supreme Court ruled that unauthorised overdraft charges are ''part of the price or remuneration paid by the customer in exchange for the package of services which made up a current account'' the customer is locked in to a contract and forced to continue to pay for a service they know longer want.

Terrible decision in my view.

[Amethyst]

Re: Rip off card-charges banned

We still see too many people who, due to charges and interest, just can't get back on top of their overdraft and are completely at the banks mercy being unable to draw a line and sort out repayment - so those people ditch the account- whereas the likelihood is if the bank let them close and stop use of the account the bank could continue charging interest and the customers would set up instalment plans.

Ridiculous argument that customers would think they can just leave the debt there... tarring everyone with the stupid brush again.

[Amethyst]

Re: Rip off card-charges banned

On the card payment charges - it used to just be Amex because of high charges from Amex to businesses - before businesses started charging everyone for everything - have Amex changed what they charge businesses now?

[Amethyst]

Re: Rip off card-charges banned

Also ( sorry ) does this mean the 'paying by card instead of DD' surcharge as well ? ( you know the one disguised as a discount for paying by Direct Debit ) ?

[EXC]

Re: Rip off card-charges banned

From memory one or the reasons Foster Burnell succeeded is because he was told he couldn't close the account until it was no longer in debit, contributing to the cycle of debt.

[EXC]

Re: Rip off card-charges banned

On the card payment charges - it used to just be Amex because of high charges from Amex to businesses - before businesses started charging everyone for everything - have Amex changed what they charge businesses now?

I don't think so. Amex will be hit by it as some retailers will not deal with them because they'll no longer be able to charge a premium. I have an Amex charge card (in preference to a credit card) and lots of retailers don't take it but at least all the supermarkets and petrol stations take it.

[R0b]

Re: Rip off card-charges banned

For me it's neither here nor there if they ban surcharges, companies will just factor it in their pricing of goods and services instead. I suppose this ban is more beneficial to businesses rather than consumers as there is already protection in place for excessive surcharges.

[Amethyst]

Re: Rip off card-charges banned

My local shop whacks 50p on anytime I pay by card ( whether I'm spending £3 or £25 ) - going up there in a tic so I'll ask him what he's going to do... lol.

( okay it's 35p ... and it will have to go on the pricing across the board ( so not fair on cash payers as they'll be cross subsidising card payers ) - better option would be for visa etc to stop charging the shops for transactions )

[EXC]

Re: Rip off card-charges banned

For me it's neither here nor there if they ban surcharges, companies will just factor it in their pricing of goods and services instead.

But at least the total price will be transparent and (in theory) subject to competition.

I suppose this ban is more beneficial to businesses rather than consumers as there is already protection in place for excessive surcharges.

There is protection but it's been a complete failure.