Refunding Money: Credit Cards

Credit cards can be an eyesore in your wallet when you are trying to get out of debt.  The pressure is on in the market right now to keep above the debts you might have as inflation increases, prices for bills and groceries are going up, and housing prices are falling.  Right now the economy is looking bleak, but that doesn’t mean you can’t take a step in the right direction.  If you have a credit card you might be eligible for a refund.

The Office of Fair Trading began proceeding in 2006 regarding unfair overdraft fees.  The overdraft fees or late payment fees were 35 pounds.  In 2006 the OFT decided to make a regulation that no credit card company could charge more than 12 pounds for the late fee.  The credit card companies of course balked at this change and there has been a battle ever since.  While most of the credit card companies have changed to the 12 pounds they are not happy about losing money.  On top of the regulation the OFT decided to approach the court regarding these unfair charges and getting refunds for consumers as the complaints kept rolling in.  In 2007 though thousands of pounds were being returned already the court proceedings stopped the refunds until the High Court could give an answer.

Now the court proceedings have reached an answer in favour of the Office of Fair Trading.  If you have been charged 35 pounds for late or missed payments you are entitled to a refund.  This is not an easy process to get embroiled in, but if you are looking for some savings or a little help in the current market this is the way to get some of your hard earned cash back.

There are two ways to go about this procedure.  You can ask for the difference between the charge and the 12 pounds that is the current charge. You can also ask for the whole amount back.  The OFT will either take on complaints and your refund application or you can try speaking directly to the credit card company.  Numerous companies are going to decline at first, but don’t take this lying down.  Jump right back into the process and keep at it.  The credit card companies feel the harder the process the more consumer will eventually give up.  For those who are making it really difficult getting the OFT involved will usually get you the whole amount back.  Since the courts have already ruled in favour of the refunds this is a pretty good way to get the money back.

There is a downside to this court battle though.  Many of the credit card companies angered at losing the money in refunds and from now on for the late fees have compromised.  They are increasing their interest rates in order to make the money they are losing back.  It is a vicious cycle with the credit card companies, but if you are entitled to a refund it is important to make sure you get it.