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2. Keep an Eye on Charges
The majority of
credit card companies charge you for 3 things – exceeded your credit
limits, late payments and what they call ‘returned payment’. They
certainly won’t make these charges overly obvious to you, but usually
include them in the 'recent transactions' part of your account statement.
The responsibility is on the customer check the card statement
frequently.
3. Request Help In
Advance
Credit card firms tend to be more lenient with fees than banks do i.e. if
you make a payment before the due date that fails to clear in time, it’s
likely they’ll scrap/reduce the charge if you ask them. Unless you a
regular defaulter, it's often worth asking the credit card issuer to
reverse such a penalty fee. Competition in the credit card market is
intense, so they don’t want to lose your custom by punishing you with
fees, charges and penalties, so will often cancel such fees and charges.
4. Calculate What
You’re Owed in Fees
With most bank charges, you can look back over about six years, and
this is pretty much the same for credit card charges and fees. You should
normally be able to ask for a comprehensive list of the charges, fees and
penalties from your credit card issuer and the grounds for the charge. The
card provider might try to charge you for re-sending the statement, but
your charges and fees shouldn't be too high. When you know how much you’ve
been charged, calculate the interest you have subsequently paid on these
charges.
In order for you to
argue against the card companies' claim that the charges are for their
services, ask for a copy of the contract you entered into and any changes
to it that have been made since you signed. This can be used as your
evidence that you technically didn’t enter into such an agreement.
5. Put it in Writing
If the credit card provider refuses to refund your fees and charges
after a phone call, then always write a letter which should state that you
require a refund of all the charges. Ensure it is addressed to the right
department, keep your copy and then follow it up later with a call to
ensure it arrived.
6. Wait for the
Credit Card Provider’s Response
You will normally receive a reply to your letter in around 14 days,
which might offer you a full refund, a partial refund or completely reject
the claim. Your provider might write back and state that the charges are
not unlawful as you have stated, or that you are mistaken. There’s also a
chance that they will use the OFT and the banks' test case on bank charges
or the FSA waiver. Just write back to them advising them that this is not
valid, as the FSA state: “We are making this waiver by consent available
only to providers of current accounts with overdraft facilities”.
7.
Read up on the Court Process
If the credit
card provider makes an offer you accept - great news! If not, consider the
small claims court. Be advised that you will incur the cost of making such
a claim. As long as you are claiming less than £5,000 it will be heard in
the small claims court, where you’ll not be liable for the card provider’s
legal costs.
8. Make a claim
There are two options for making a claim. One is to go to the local
County Court in person, the other, far simpler way is through the courts
system's Money Claims online service. This allows people to make claims
from the comfort of their computer, save details as they go along and pay
fees of between £30 and £120 online.
9. Wait for the Bank
to Act
The bank might repay the money after the threat of legal action. If it
doesn’t and simply ignores your claim, you will automatically win after a
period of 14 days. If the bank decides to enter into a legal argument with
you, it may enter a defence.
10. Their defence
With the advent of the OFT bank charges case, cases have been halted
until the verdict is arrived at. If you’re requesting charges back then
there’s no reason you can’t continue.
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