A new challenge to credit car charges?

[Dark]

Credit Card Charges:

 

I think this could be VERY important.

 

When the OFT investigated Credit Card charges it backed off from making an explicit demand that charges reflect the true costs to consumers.

 

The OFT, after consulting with banking bodies, set an upper limit of £12 for credit card charges (on what basis? The banks refused to co-operate and disclose their costs). It did not say the charges should be £12, or that a charge of £12 or less would necessarily be fair, but it would take no action over charges up to £12. (Why not?)

 

The consensus from industry insiders seemed to indicate that the true cost to banks was £1-£2, which suggests that the banks are still inflating charges.

 

The result of the OFT's action was that all banks fixed their charges at £12. Pretty ironic when you consider that one of the OFTs roles is to encourage competition and prevent price fixing.

 

The result? I have looked at the charges of about 90 different credit cards in Banks and on the Internet.

 

EVERY SINGLE ONE CHARGES £12 for late payment and for going over limit.

I THINK THE DTI SHOULD INVESTIGATE CREDIT CARD ISSUERS FOR PRICE FIXING.

 

(Which is embarrassing for the OFT as they effectively set the price).

Perhaps the Competition Commission should look at this, but members of the public cannot refer things to the commission.

 

I THINK THERE COULD BE A CASE AGAINST THE BANKS HERE.

Edited September 23, 2012 by Dark
Correction: OFT not DTI!

[citizenB]

Do you mean the OFT ??

[Dark]

Yes, I meant the OFT. I shouldn't post when I have a hangover :/

 

I've corrected the OP. Thanks.