I think that charges and fines should be considerably higher in order to discourage irresponsible borrowing and credit taking. This is about £40 each month and so far theyve charge me over £300 in these charges alone. Twice, over the years i have asked for late- payment fees to be refunded - and they were. Debbie ellen, manchester my charge was reduced by 50%, but i still feel this is extortionate when my balance owed was £102. Why should there be any charge?The better payment practice group and its individual members have taken reasonable care in sourcing and presenting the information. These charges are illegal when they are penalty charges.

These are applied for being late with a payment. Click here for 'a user's guide to the amended late payment legislation effective from 7 august 2002. These are applied for being late with a payment. I think that charges and fines should be considerably higher in order to discourage irresponsible borrowing and credit taking. And was charged a £25 late fee. Charging interest is designed to be a spur to payment.

A reference rate is now used to determine the late payment interest rate, which is fixed for a six- month period. When i got my statement, the £25 was charged. The banks know that they are breaking the law and this is why they will never contest these actions to recover penalty charges in court.

Businesses using the late payment legislation should calculate the amount of interest using the debt + vat but do not add vat onto the interest itself. Hi - i have taken the halifax to the small claims court over bank charges and won. See also: late credit card fees 'too high. Barclaycard, the biggest credit card company, defended its £20 charge. Bt seem to be hoping that the modest charge £5 + vat, ie £5. 87. Limiting the charges to recovery of costs means that there is no incentive for cardholders to abide by the rules. Scams  charles @ 11:53 pm late payment charges on credit cards: you dont have to pay, and im the living proof.

If we all get refunds, wont they just stick their charges up?But that wasnt the justification i was going to use for refusing to pay the late payment. And more to the point, if the charge is wrong once, then its wrong every time - as the oft has recently ruled.

Next time you get a charge youll find that the answer will be no, no matter how much you complain. I wrote previously about how you dont have to pay the late payment fee that credit card companies charge. On both there was also a late payment charge of £20. There are plans to 'name and shame' late payers. Some of the banks already take a stealth charge via our telephone bills by using expensive 0870 numbers for customer services. Credit cards are in the vast majority of cases far more expensive to process than other payment means.