How to Make a Credit Card Claim

If you are anything like me, you will use your credit card for pretty much any transaction you make. Personally, I do this because I earn Nectar points for every pound I spend on my Sainsburys credit card. My volume of transactions runs into the hundreds each month.

With such a high number of transactions taking place, mistakes are bound to occur. Erroneous fees and charges do happen – and when they do it is within your consumer rights to challenge these and reclaim the money.

What Credit Card Charges Are There?

There are a number of different charges you may spot on your credit card statement. In no particular order, these are:

  • Interest fees
  • Fees for holding the card
  • Fees charged for ATM cash withdrawals
  • Fees for using the card overseas
  • Fees for missed repayments (please don’t miss your repayments though – it does your credit score no good)
  • Fees for exceeding your approved and agreed credit limit

So you can see, that is quite a few different ways you can be charged for owning and using a credit card.

Ok, Which of These Charges Can I Reclaim?

Excessive Fees : –

It may be possible for you to claim back some money if your provider has charged you excessive fees for missing repayments or exceeding your credit limit. But what is excessive? Well, the OFT ruled back in 2007, that £12 was the ceiling for a fair charge. So any charges exceeding this amount can be reclaimed.

Mistakenly charged fees : –

It is entirely possible that your card provider mistakenly charges you an incorrect fee – for example on an interest charge. These mistakes can then be compounded, as you may also be charged interest on the fee – and should the fee take you over your credit limit – you will also be charged for that. All of this may be able to be reclaimed.

How to Reclaim the Money

So if you have found some fees that you need to be reclaimed, here are the steps you need to take to reclaim that money.

Step One

Download your statements and look out for and penalty charges that you could reclaim. If you don’t have your statements get in touch with your card provider and ask them to provide the last 6 years of data of charges on your account. They legally have to do this and they have to do it within forty days. They may also not charge you any more than ten pounds for sending you this information. You should use this data to work out the total charges you have paid for going over your credit limit and for any late payments.

Step Two

Get in touch with your provider and tell them how much you want to reclaim (remember; you can add 8% annual interest to any charges you want to reclaim), the dates the charges were made and the amounts you were charged and why you deem the charges to be unfair (For example, the charge exceeded twelve pounds).

Step Three

Wait for your provider to respond. Your provider has a duty to respond and if they don’t then you should raise a complaint (see below).

When they respond, they will do one of three things:

  • Decline your claim.
  • Accept your claim but only agree to pay part of the amount claimed.
  • Accept your claim and agree to repay the whole lot

Obviously, scenario three is the ideal result – however, whichever result you get you then have two options – to either accept or reject. Accepting will end the process here and if you are due any refund then you will receive your money.

If your provider rejects your claim or offers a partial repayment amount that you deem unfair, then you should move onto the next step and make a complaint.

Step Four

Making an official complaint needs to be done through the Financial Ombudsman – see their website here. The Ombudsman is an impartial third party to solve disputes between financial businesses and their customers. You can read more info on how to submit a claim and what to expect, here.

Good luck!

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