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Re: Reclaim Your Bank And Card Charges
Include this in your next letter (apologies for the delay).
"....I did not enquire as to why these charges are added. I know why they have been added and, in light of the information as provided in my original correspondence, reiterated above, I am disputing the legitimacy of same.
Nowhere did I suggest that the OFT were challenging the right of banks to add default charges. I stated that the OFT viewed charges in excess of £12.00 (yours being £**.**) as excessive / unfair. You quite rightly pointed out that the OFT believes default charges of £12.00 as likely to be fair. You then go on to assert, as is your right, that you disagree with the OFT analysis. It is clear that we are of differing opinions on the matter but, for my part, I have yet to see evidence of any financial institution successfully defending an action reclaiming default charges where the plaintiff has cited the views / opinion of the OFT on the matter.
Additionally I would draw your attention to what Mr Fingleton states in paragraph IV of his press release (68/06) 6th April 2006:
“Where credit card default charges are set at more than £12, the OFT will presume that they are unfair, and is likely to challenge the charge unless there are limited, exceptional business factors in play. A default charge is not fair simply because it is below £12.â€à Â
And further, from NOTES 4. thereof:
“The OFT is 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.â€ÂÂ
Notwithstanding your right to disagree with the OFT’s analysis, as I have said, I find it interesting that of the many dozens of documented cases of County Court action having been instigated against banks to recover charges not one successful defence of said charges has reached court - all have been settled out of court.
On that basis I think it is fair to assume that HBOS, along with many other financial institutions, is uneasy with the prospect of having to explain the breakdown of their charges in open court. It was for that reason that I requested a refund of these charges without the “hassle⠢‚¬Â of issuing proceedings. I would much rather resolve this situation at this stage than draw further on County Court resources by encouraging defence motions which, ultimately, never see court. I would also like to think that HBOS would be minded to consider the fact that there are more important, though no less principled, matters which County Courts could be dealing with...."
cc the letter to Mr Fingleton at the OFT and also advise them that you will be including copies with your N1 form in the event that they insist on going to court.
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