Over-the-limit fee - UK credit card charges

Posted - 04/05/12

For those consumers unaware: credit card providers usually levilege a charge once a customer has gone over their agreed upon credit limit. When a customer has reached - or exceeded - their credit limit, a credit card is usually referred to as "maxed out", and can no longer be used until the customer has repaid some of the debt.

On the whole, customers usually only exceed their agrred upon credit limit by a small amount; which led the OFT - Office of Fair Trading - to investiagte excessive over-the-limit fee's. The OFT said it would investigate any credit card provider charging a late fee above twelve pounds. Many credit card providers had been charging fees of up to thirty pounds.

If you have been charged over £12, then you can write to your credit card provider and demand a repayment of the charge which surpassed the £12. For example, if you were charged a £20 late fee, 20-12=8, you could demand a repayment of £8. If you have no success with this course of action, you can take your complaint to the Financial Ombudsman Service.

Further reading: www.oft.gov.uk/news-and-updates/press/2006/68-06