Three years on - Credit Card Claiming

[TANZARELLI]

Re: Three years on - Credit Card Claiming

This one Tanz Retail Banking Team




http://www.thisismoney.co.uk/credit-...2&in_page_id=9

Thanks.

[Tools]

Re: Three years on - Credit Card Claiming

I read with interest in that letter Nick something that would clearly also be applied to the current OFT Test Case against the banks.

Its purpose was not, as we have also explained, to set a fair fee for individual issuers. Under the Unfair Terms in Consumer Contracts Regulations (UTCCRs) only a court can determine a fair fee. (paras 2.1 – 2.2 of the April 5 statement)

Once (if) the banks appeal to the HoL is rejected, the Courts have already ruled that the banks fees can be assessed under UTCCR's. I assume that the OFT will only be concerned with assessing the fairness, which we already know they believe they are not fair. This surely only leaves stage 2 of the litigation to decide a "fair fee" for each individual bank. I canot see a "one fee fits all" situation as this would be in direct breach of competition and cartel rules.

As the OFT already believe them to be unfair, once the HoL decision is made there should not be any need for the OFT to investigate or delay proceedings further and Stage 2 should IMO start "expeditiously".

I also think regarding..............

Yes and hopefully the bank charges UTCCR investigation and test case result will provide some kind of cross-over mechanism to credit cards. And it may be that they were counting on that.

...................the issue of card default fees would need a seperate investigation/Test Case as the penalty aspect and the way fees are applied are completely different to PCA's.

There are only really two fees that cause concern, Late Payment Fees and Overlimit Fees. The late payment fee surely has a penal aspect to it and has no resemblance to anything within a PCA. However, Overlimit Fees have many similarities with Unauthorised Overdraft Fees on PCA's, but I cannot see them using the "consideration" , "core term" or "fee for a service" arguements with as good effect as they did with PCA's.

Also credit card agreements are regulated under the CCA, whereas PCA's are not (as yet) so I think the cross overs may not exist or are only minute in detail. The OFT should now surely realise this and no longer rely on the decisions made in the current Test Case as an excuse to delay any further action against the card providers.

Apologies for the ramble, my thinking cap is back from the dry cleaners today and the cobwebs are cleared.

[EXC]

Re: Three years on - Credit Card Claiming

An excellent post Tools and I agree with every word of that.

When I said that ''Yes and hopefully the bank charges UTCCR investigation and test case result will provide some kind of cross-over mechanism to credit cards. And it may be that they were counting on that.'' I wasn't suggesting it would automatically apply but would provide relevant case law and principles. As you say credit cards would need their own investigation and test case.

[natweststaffmember]

Re: Three years on - Credit Card Claiming

I think the Return fees(ie the fees when a DD for the credit card is unpaid £10 for example, needs to be looked at specifically when the account holder has paid via another method).

[Tools]

Re: Three years on - Credit Card Claiming

Thanks Nattie, I have never paid my cards by DD so wasn't aware there was another fee to throw into the equation.