Credit Card Fees - The Law

Due to the Office of Fair Trading's demands, many credit card companies have recently dropped their penalty charges from £30 to £12. But this is still high and it is believed these fees should cost the credit card companies no more than a couple of pounds. When a person takes out a credit card they enter into a contract. Late payment fees are the equivalent of a charge for breach of contract, known as liquidated damages, and the courts can enforce payment. However the sum must reflect actual costs incurred and not exceed damages the card company suffered due to the breach of contract, otherwise it becomes a penalty, which is unenforceable by the courts. The argument that the charges exceed the customers losses and are not enforceable by law is covered in the Unfair Terms in Consumer Contracts Regulations 1999, Unfair Contract Terms Act 1977 and at Common Law. Some financial institutions argue that charges are a fee for a service, however if this is the case then they must be reasonable under S.15 of the Supply of Goods and Services Act 1982.
Charge Claims can help you reclaim all of your credit card charges for the last 6 years plus interest of up to 29.9% If you have been charged late payment fees then you will be entitle to financial compensation.