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Hi guys, I'm a bit lost and wonder if you can help, Barclaycard have just offered us the difference between the charges and the £12 OFT guideline. I've seen in the past letters to refuse this but can't find them now for the life of me. Can anyone point me in the right direction please?
Thanks
Thanks Michael, I guess I can adapt one of those, there was one specifically mentioning the £12 - I thought it was in the CapOne section but can't find it now. Don't supose you've any ideas?
AAh haa... found it (or very similar anyway) - it's a post from Spikeskull in the Capone forum it reads;
With regard to your comments concerning the OFT statement of April 5th, whether or not you disagree with the OFT's analysis is irrelevant. Indeed, your response indicates that you have clearly missed the whole point of the OFT enquiry, and subsequent statement. In line with the OFT, customers also agree that banks have a right, as a business, to levy charges where there has been a requirement to intervene in customer accounts. The argument of customers, and also of the OFT, is that these charges must be fair, proportional, and a reflection of the actual loss to the bank for their action.
When the charge is issued as a penalty, the position of customers and the OFT is that the charge is unlawful under contract law, and is therefore unenforceable. To quote the OFT statement, 'We consider that a contract term is likely to be unfair if it requires consumers to pay more as a result of a default than the court would order them to pay if they were sued for breach of contract. This means that a default charge should not exceed a reasonable pre-estimate of the administrative costs that the consumer ought to have realised would be likely to be incurred by his or her card issuer in dealing with defaults.'
Additionally, the OFT did NOT state that it 'believes a default fee of £12 is fair.' What they actually said, and I quote, 'We are not suggesting that default fees should be set at £12, and a court will certainly not consider that a default fee is fair just because it is below the threshold.'
As you are clearly aware, most banks, as well as the BBA, have indicated that they think the analysis is wrong, unfair, or only related to credit cards. However, the fact remains that the OFT has stated it is subject to all consumer contracts - including bank accounts, overdrafts and mortgages
When the OFT makes a ruling, then creditors are expected, and indeed required, to comply. All banks and credit card companies, in general, hold licences to lend money under the Consumer Credit Act 1974. With this in mind, and considering your ill-judged analysis, I shall report you to the OFT for misrepresentation, and I shall also request that the OFT revoke your licence under the 1974 Act.
Anyway thanks for your help, I think that it says what I need!!!!
Does anyone know where this letter is?
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