Banks 'conning judges' over credit card fees

Wednesday, 17 October 2007 12:00

UK banks are succeeding in stopping consumers claiming back unfair credit card fees and misleading judges along the way, a personal finance expert has said.

Martyn Lewis claims banks are convincing judges the hold on overdraft charge cases for a test case in the High Court also refers to credit card charges.

However, the Office of Fair Trading ruled some credit card charges unfair in April last year.

"It's a national disgrace. The FSA (Financial Services Authority) made it plain the hold only applies to bank charges, yet banks' lawyers are disgracefully trying to bully customers, using it as an excuse to suggest it applies to credit card cases too," Mr Lewis said.

"They know full well there's already been a ruling that credit card charges are unfair - it's done and dusted.

"Yet a few banks are pushing to go to court, then asking judges to put these cases on hold, and some judges fall for it."

However, to challenge a hold to a case costs £75.

Lorraine Kay, 39, from Warrington had her claim for £465 stayed at Warrington County Court.

"After I applied through MoneyClaim online, the court came back saying there was a stay on the claim," she said.

"I told them that it doesn't apply to credit cards so they sent me a form to fill in and said I even had to pay to challenge the stay. I'm on income support, but I have to go down
to court and prove this or I'll have to pay to challenge."

Mr Lewis' website, MoneySavingExpert.com, has now launched a guide for consumers aiming to reclaim credit card charges:

• Find out all your charges and add them up.

• Write to the credit card company saying the charges are unfair and you
  want your money back, plus interest.

• If providers say no, write again to tell the credit card firm you will be taking
  court action or going to the Ombudsman if it does not settle.

• Go to the Financial Ombudsman Service to settle the dispute.

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