Bank penalty charges and the right to reclaim them has been a story that we have been following closely here at the Money Hospital.
It seems to have been an ongoing saga for a while now, though the end may be in sight now that the test case between the leading banks and the OFT has started.
And though bank penalty charges reclaiming is on hold...credit card and mortgage exit fee reclaiming isn't!
Did you know that you can force your current or old credit card provider(s) to repay the last 6 years of late payment fees or charges for going beyond your limit?You can get £100s or even £1,000s back as a result.
In 2006, the Office of Fair Trading (OFT) ruled these penalty fees of up to £35 were unfair and potentially unlawful. Law states that any charges credit card providers levy on their customers must be proportional to the actual costs they incur.
And a good question to ask is 'does it really cost £35 to send an automated letter when you've gone 5p over your limit?'
They're not supposed to fine you; yet over the years that's exactly what has happened when you have missed credit card repayment dates or gone over your credit limit.
And it's for this reason that you should be able to get back the last 6 years' worth of your money.
Having investigated credit card charges in April 2006, the OFT said, that it would not launch a specific investigation on any card companies with charges higher than £12. While the OFT ruling had no technical power, across the board, most card companies reduced their charges to this £12 level, which made it easier for you to reclaim the difference between what you were charged and the £12 figure.
So for each £35 charge, you should get at least £23 of it back; (though many people actually get the whole £35)
If you want to claim, then you should consider Claims Financial; a reputable and regulated claims company.
They can help you claim back your credit card fees here.
- Mortgage Exit Admin Fee Claiming
Have you switched your mortgage or paid it off in full in the last few years?If you have, it is likely that you have been overcharged by your old lender, possibly by £100s. You can now claim this money back.
Mortgage Exit Admin Fees (MEAF) are what you pay when closing a mortgage account (including moving to a new lender).
Sneakily some lenders have been charging people more than their contracts stated but in January 2007, the FSA said if "past customers have paid a higher fee they can expect a refund of the difference".
Yet if you don't ask, you don't get!
MEAF's are known by a variety of other names including 'deed release fees', 'sealing fees', 'final administration fees', 'discharge fees' and 'final redemption fees'.
A MEAF is a very specific charge, and this ruling only applies to it; arrangement fees and other fees that are paid when you take a mortgage out are not part of this.
MEAF's are commonly confused with 'early repayment fees', also known as 'redemption penalties'. They're not the same thing, and this ruling doesn't apply to redemption penalties.
To clarify:
- Early Redemption Penalties cannot be reclaimed
These are charged when you repay or switch mortgage during a special deal, such as a fixed or discount rate
These are always charged when you pay off or switch a mortgage, regardless of what your deal is. This means you can sometimes pay both a 'redemption penalty' and a MEAF.
So, if you want to claim, then you should consider Claims Financial; a reputable and regulated claims company.
They can help you claim back your mortgage exit admin fees here.
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