Fair Trading Offices has declared that credit card providers should be able to charge as much as €12 on late fees. OFT (Office of Fair Trading) feels that the recent fees for late charges are between 20 and 25 EUO dollars. They call this an unfair act.
Customers in the future may expect to pay administration fees for processing the late charges. Those fees will include stationary and postage.
According to OFT it has been officially declared that any penalty fees are indeed illegal under the breach of Unfair Terms in the 1999 Consumer Contract Regulations. OFT stated that credit card defaults and fees are typically set to be high, which is an unfair act?
If this law passes UK cardholders can expect to save €300 million each year at minimal. May 31st is the deadline for all credit card companies to reply to statements before OFT proceeds with the
What will this lead to –?
Some people wonder if credit card companies will increase interest and APR rates on credit cards. However, after carefully examining the credit card market we see that many providers are offering 0% interest rates on credit cards, while the APR is still at a high.
