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Originally Posted by SLM
Why is that? All the other charges are fair enough!
And Mick I agree with Bill  |
I've explained this previously on this thread.
The reason why they have / will have to review elements of their "proposed new charges" is because penalty charges, such as "downgrade charges" or "late payment" charges are illegal under existing "common" and "consumer credit" laws in that they do not represent liquidated or pre-estimated losses.
This is a matter of proven law, not a matter of debate (unless of course NTL, unlike any of the major banks or credit card companies in the UK, is prepared to disclose / quantify the breakdown of their liquidated losses per failed transaction in a court of law should a customer elect to challenge them to do so).
Some of the charges may seem "fair enough" given the circumstances outlined in their Press Release. However, I can assure you that the "late payment" and "downgrade" fees ,as mooted originally, are unenforcable under common law.