Avoid late payment fees on credit cards with direct debits

As most people know the fees and charges that credit card firms impose for late and missed repayments can quickly add up, costing a small fortune. Whilst credit card companies have had to cap these fees at a maximum £12 for the last few years they fees can amount to a tidy sum over time.

Given that many people make late repayments from time to time or even miss repayments altogether credit card companies are able to make a fortune from these fees.

Industry officials are now advising consumers to try and avoid paying these fees by ensuring that their payment is made every month and in time.

Whilst this is not always easy given the fast pace of life that many of us have to cope with there are ways to ensure that your payment is never missed or late, thus avoiding the hefty fees that can otherwise be applied to your account.

Consumers who set up a standing order or direct debit to have their credit card repayments made each month do not run the risk of missing repayments or making late payments, and therefore do not have to worry about being charged because of this.

Customers are advised to set up a payment for at least the minimum amount to come out, although those that pay in full each month can make arrangements for the full bill to be paid each month.

One consumer stated: “I used to miss credit card repayments on a regular basis, and because of this I used to spend a fortune in charges alone, which was a complete waste of money. However, not that I have made arrangements with my bank I know the money will go our automatically and in time, so I have no need to worry now.”

Tags: credit card charges, fees, late payment fees, Direct debit, industry officials

Man claims his Abbey account was frozen in revenge

A man who gave a low rating to an employee at a call centre at Abbey bank said that he had his account frozen out of revenge. The customer of the Spanish owned bank said that he had found the customer services representative at the call centre to be ruse and arrogant, and when he had been asked to complete a survey on his experience he gave the lowest scores to the employee, which he felt was justified. However, he says that as a result his account was frozen in revenge. Read more

Tags: Banking, massive inconvenience, bank account, business, money back, standing

Free banking under threat, says BBA

Banks in the UK might introduce wide-ranging extra charges on current accounts, the British Bankers Association (BBA) said today.

The BBA said that the charges, likely to be fiercely contested by consumer groups, will bring the UK into line with regulations in the US, Australia and Europe.

Charges would include fees being levied to write cheques, to pay bills by direct debit and even to use cash machines.

According to a BBA, spokesman, the new fees would “follow patterns abroad where banks charge for transactions such as ATM use, direct debits and standing orders, in addition to an annual fee.”

The statement could be seen as a reaction to the bitter battle banks are currently locked in with customers and the Office of Fair Trading (OFT), over what is seen as their “unfair” charging procedures.

The Financial Services Authority (FSA) is currently investigating banks’ overdraft charges, and will release their findings in the autumn.

Tags: bitter battle banks, Fair Trading, fsa, financial, standing, today, Banking, overdraft