Quote:
Originally Posted by Mr Angry
I am not disagreeing with anyone, I'm simply stating a fact. "Administrative charges" are "administrative charges" up to the point that they exceed the "administrative costs" whereby they become a "penalty charge".
With all due respect we've been round the houses on this one. The OFT gave it's opinion on cc charges, not the definitive law on same. Had the OFT said it considered the threshold of £6.00 to be fair then the banks would have reduced it to £6.00 . Again I refer you to my quote from the OFT ""....and a court will certainly not consider that a default fee is fair just because it is below the (our suggested) threshold (of £12.00).”
There is a very real difference between the opinion of a Government body and the law - which is why John Fingleton worded his statement in that fashion.
As for the cheques - they are one of the few processes left in banking which require "human intervention" which is quantifiable as an administrative cost.
|
Ok I think there has been a misunderstanding then, I was calling it a pentalty fee when I meant admin fee. So its legal to charge for the admin costs involved but not legal to add anything on top for profit and penalise the customer.
OFT made banks reduce their credit card 'penalty' fees to £12 and i was curious if they would set the bank fees to the same level since if it was set to the same level it would be hard to see how credit card late payments can cost as much as bouncing cheques.
I would love for them to go one step further and stop the banks taking time to clear cheques and make them instant or at least same day clearance since its done electronically now.