Bogus Late Payment Charge

[chrispedro]

Hi, tempted by a discount, my partner signed up for a Brantano card and bought some trainers for £18.50. The statement duly arrived from Creation Finance with a payment day of the Feb 27th; I paid the £18.50 by electronic banking on the 25th Feb. When I transfer money between accounts in different banks by electronic banking it normally arrives in the recipient account the same day, yet the next statement said it was paid on the 2nd March and there was a £20 late fee.

She called Creation, explained the situation and asked for the fee to be cancelled, She was asked to email them, which I duly did on her behalf. The next month, they hadn’t cancelled the fee, but had added another one.

She wrote to them explaining the situation again and said if they did not cancel the fees she would take legal action. She received a call yesterday and they offered to cancel the 2nd fee only, she said she hadn’t paid late and would not pay any late fees.

Where does she stand legally? Can she take them to court to reclaim the bogus fees?

We would like to avoid this spoiling her credit record, should we pay-up and then claim it back?

Thanks.

[StoneLaughter]

Re: Bogus Late Payment Charge

Not only are they a penalty charge and therefore totally unenforceable, but they exceed the OFT threshold for "automatic intervention" of £12.

I would write to them (don't call, it's useless) and state that you will not be paying any late payment fees as you initiated payment in good time, and further that if they continue to pursue these unlawful penalty charges you will consider your legal options as well as complaining to Trading Standards and the OFT.

Bear in mind that this will not conclude the matter - it will merely be an opening salvo.

{edit} I've just noticed you have already threatened legal action. You may wish to consider writing a "Letter before action" - stating only that despite your request they have not written off the penalty charges and that if this has not occurred within 14 days that you will be commencing proceedings. Be prepared however to carry this out at the 15th day.

[natweststaffmember]

Re: Bogus Late Payment Charge

The payment is reclaimable as SL said.

[borgbaiter]

Re: Bogus Late Payment Charge

hi

despite faster payments some payments still take 3 to 4 days to go from one account to another. its easier to avoid a penalty than to have to reclaim it. you need to get any adverse credit report amended as well as the charges refunded.


borgbaiter