Re: OFT confirms Credit Card Default Fees were HIGHLY UNFAIR under the UTCCR
I would imagine that ''cost'' would equate to total loss. Don't forget that they would still have been raking in 12 sobs a pop anyway - which would easily cover costs - so anything above would have been all bunce.
In answer to my own question, the total cost to industry is estimated at £500m:
''The OFT estimates that the level of default charges across the
industry has led to unlawful penalty charges currently in excess of
£300 million a year. However, grossing up HBOS’s £60 million
projection for 2007 for the whole industry (based on HBOS’s share
of outstanding balances at end 2006) gives an even higher figure.
It implies an industry wide impact of more than £500 million.''
Originally posted by Curlyben
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In answer to my own question, the total cost to industry is estimated at £500m:
''The OFT estimates that the level of default charges across the
industry has led to unlawful penalty charges currently in excess of
£300 million a year. However, grossing up HBOS’s £60 million
projection for 2007 for the whole industry (based on HBOS’s share
of outstanding balances at end 2006) gives an even higher figure.
It implies an industry wide impact of more than £500 million.''
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