Bailiff companies curbed from charging excessive credit and debit card surcharges !!

[tomtubby]

On Saturday, 6th April 2013 the government introduced a BAN on "excessive credit and debit card surcharges" thereby preventing companies charging anything more than it actually costs them to process payments.

 

The new regulations are certainly not before time and the Consumer Affairs Minister; Jo Swinson stated the following:

 

"The practice of excessive payment surcharges has been ripping of consumers for far too long"

 

 

Charging a fee for making payment by credit card ( or, to a lesser extent..a debit card) was a practice that was typically used by companies when consumers booked concert tickets, theatre seats, car hire and airline tickets etc.

 

For reasons that were unknown, bailiff companies decided that they too could charge a credit card fee when accepting payment by credit card with the WORST OFFENDER ( as far as I am aware) being PHILIPS Ltd who not only charged a credit card handling fee of 6% but unbelivably also charge 20% vat on the fee !!! It beggars belief that this practice has been allowed to go on for so long. unchallenged.

 

The Office of Fair Trading has provided examples of the maximum amount that can be charged for using a credit card and for instance; on a transaction of £100 the "surcharge" should be no more than £2.10 and on payments of £250 a maximum of £4.94

 

The new rules will be covering all of the European Union but have been introduced in the UK earlier than the rest of the EU because of the concerns that were first raised by Which magazine.

 

NOTE: New companies and very small businesses will not be subject to the new rules until June 2014.

 

Complaints can be made to the Office of Fair Trading.

 

http://www.bbc.co.uk/news/business-22042309

[brassnecked]

Wonder which bailiff co will be the first to be caught out?

[tomtubby]

This is where the public can make a difference by taking complaints to the Office of Fair Trading.

 

I will need to read the regulations carefully as I would "suspect" that some bailiff companies will attempt to say that they are come under the exempt category of "small Business"...or as the regulations state: MICRO BUSINESS.

[tomtubby]

Although this a link to the Consultation paper regarding credit card charges, it does provide some very useful information:

 

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/32703/12-1008-consultation-ban-above-cost-payment-surcharges.pdf

[brassnecked]

Although this a link to the Consultation paper regarding credit card charges, it does provide some very useful information:

 

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/32703/12-1008-consultation-ban-above-cost-payment-surcharges.pdf

 

It certainly blows the routine charging of £3 or £5 for a debit card out of the water, Crapita and others take note 53 pence is all you should charge, most likely Equita and Ross 'n Robbers would try to add VAT to the charge.

[ploddertom]

And of course some of the Regulations do not allow for "card fees", more should use Day v Davies 1938 against them

[Bailiffbreaker]

I got charged £12 over a £200 debt... 5% CREDIT card surcharge + VAT...for using a DEBIT card through Collectica. Their own website says Debit cards only carry a charge of £3.

 

I therefore would like to propose Collectica wins the award

[ploddertom]

I got charged £12 over a £200 debt... 5% CREDIT card surcharge + VAT...for using a DEBIT card through Collectica. Their own website says Debit cards only carry a charge of £3.

 

I therefore would like to propose Collectica wins the award

 

Since the recent change in the law they are only allowed to charge what it costs which should bring Debit Cards down to approx 50p & credit cards 1.5% - 2.5%.

[brassnecked]

Report Collectica to OFT or whoever handles complaints for excessive card payment fees.

[Bailiffbreaker]

Report Collectica to OFT or whoever handles complaints for excessive card payment fees.

 

I intend to, I just need to know how to proceed in the best way so Collectica get the maximum punishments. I am afraid I won't be able to complain to the OFT because I have a pending court case with them or vice versa!