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Penalty Charges?


steve chester
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Hi,

most credit card companies charge interest daily, 18.9% in my case, on all transaction including default charges.

Most claimants are claiming from there credit card companies before oft report, when default charges = £25.00 for example.

Even if you paid off the full balance the following month, the credit card companies would have made 40 pence interest on the £25 default charge = £25.40.

The law of penalty charges permits the recovery only of losses caused by a contractual breach.

Therefore are credit card companies recovering 40 pence more than it costing them, does that not count as a profit?

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