Where credit card default charges are set at more than £12, the OFT will presume that they are unfair, and is likely to challenge the charge unless there are limited, exceptional business factors in play. A default charge is not fair simply because it is below £12. Setting a threshold for intervention is a pragmatic pro-consumer action that is designed to give the industry the opportunity to change its practice without litigation. It is supported by detailed guidance to the industry as to how to reduce the likelihood of public enforcement.
A default charge should only be used to recover certain limited administrative costs. These may include postage and stationery costs and staff costs and also a proportionate share of the costs of maintaining premises and IT systems necessary to deal with defaults
Where we conclude that a fee above the threshold is unfair we are likely to challenge the charge but will have regard to all the circumstances in deciding whether to do so or not. We will regard default charges set below the threshold as either not unfair or insufficiently detrimental to the economic interests of consumers in all the circumstances to warrant regulatory intervention at this time. This does not affect in any way the statutory rights of individual consumers, or groups of such consumers, to challenge the level of default charges, either above or below this threshold
Claiming back Credit Card Penalty Charges
or can the bank say the going rate is now £12.00 so we are only going to give you £180
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Originally Posted by Having_A_Knightmare
