Capital 1's offer

[graceful_willow]

Received a "gesture of goodwill" offer from Cap 1. The letter stated...

 

"The OFT hasn't challenge the right of banks to charge default sums, just the level of those default sums. Cap 1 reduced the level from Sept 2006 to £12 each, following the publication of the OFT recommendation. However, I appreciate that you've incurred previous default sums at the higher rate and would like to address this"

 

So they offered me the difference.

 

I haven't send them an LBA yet, what rejecting offer letter should I send?

[davey77]

If you want to reject that offer and go for the full amount then inform them that although the OFT may not have challenged the Banks right to apply a certain charge, the OFT, by the same token, has NOT giving permission to Charge £12 either.

 

I would adapt rev.ian's letter and amend to your own requirements, not forgetting to put that quote from the OFT:

 

http://www.consumeractiongroup.co.uk/forum/royal-bank-scotland/187177-mint-pay-back-12-a.html

 

[skintboy69]

I don't know whether this would be of any use:

 

I note that you have offered to repay me the difference between the charges you have levied against my account and the £12 charge you have now implemented.

.

I note that your letter effectively seeks to justify this charge on the grounds that it complies with OFT guidance. In that guidance, the OFT says:

As a practical measure, to help encourage a swift change in market practice, we are setting a simple monetary threshold for intervention by us on default charges. The threshold is £12. (Paragraph 5.3, emphasis mine).

We regard the setting of the threshold as a provisional practical measure to move the market towards compliance. We should make it quite clear that we are not inviting the banks to align their charges at such a threshold figure. We are not proposing that default fees should be equivalent to the threshold, and a court will certainly not consider that a default fee is fair just because it is below the threshold. (Paragraph 5.5, emphasis mine)

 

The threshold is not intended to be a permanent feature of our intervention in this market. We will consider further action if trends in the market suggest that this threshold approach is insufficient to bring about appropriate and early change in the market. (Paragraph 5.6, emphasis mine)

 

It is also important to note that the threshold for action is a statement of our regulatory intent. We have no power to constrain private civil actions or to determine what a court should decide and other enforcers may apply for injunctions under the UTCCRs. (Paragraph 5.7, emphasis mine).

 

It is quite clear from the above that Capital One cannot claim the charge of £12 to be sanctioned by the OFT in any way.

 

I therefore accept your offer only as a partial settlement of my claim and intend to continue with a court action since the OFT guidelines say that the fairness of the charges should be determined by a court.

 

 

 

Best of luck.

 

T.

[graceful_willow]

Appreciate your responses. Thanks.

[graceful_willow]

Reply received from Cap 1. States they will not refund all charges, just the difference. And that OFT did not advise them to refund all charges.

 

My next step I believe will be court action? As this is credit card account, do I use the same N1 for current accounts?

 

Thanks.

[crippla2k]

They did the same thing to me, I sent them an LBA, they replied with the same offer said it was final,

 

I filed N1 Poc and they have offered 6/7 of the money I asked for, but still no default removal so im pushing on with my court claim!!

[graceful_willow]

On "credit card charges POC N1" (Bank charges templates) it states that on the schedule of charges - to include the date you paid the charge. I don't remember including that on mine as there isn't a column for it on the spreadsheet that I used. Does it matter, cause I already submitted my N1?

[Bookworm]

I was looking at your threads and saw this one had stopped short...

 

What happened?