Loans and Finance

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Wednesday, October 17, 2007

The Great Credit Card Con

Not content with their already lousy reputation, Banks and credit card companies in Britain are determined to dig a further grave for themselves and the British financial services industry.

Campaigners allege that banks are deliberately deceiving customers who try to reclaim default charges on their credit card bills. Banks have been telling courts to halt their cases, because of a separate decision affecting efforts to reclaim overdraft charges.

In April 2006, the Office of Fair Trading (OFT) said it would not challenge the legality of credit card default fees, so long as they were set at a level no higher than £12. Therefore many people are entitled to reclaim fees in excess of this amount.

Martin Lewis, of Moneysavingexpert.com, said

"Many banks are outrageously trying to apply the hold on bank charges reclaiming, to credit cards reclaiming, even though the Office of Fair Trading already sorted this out back in April 2006."

The British Bankers' Association deny this:

"This only applies to current accounts and should have no effect on credit card claims.

The Financial Services Authority is monitoring how this is working
."

A somewhat lame excuse, as it attempts to pass responsibility to the FSA.

Is it any wonder people have lost faith in the financial services industry, and loath banks and credit card companies?

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