They don't want you to know about credit card charges

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They don't want you to know about credit card charges

In April 2006, banks and credit card companies lost a case brought against them by the OFT for the overly high penalties they had been charging their customers. As a result, these companies have had to lower their charges (sometimes as much as 20 for a missed or late payment) to 12. However, now the banks are re-couping the money they have lost, by adding heightened interest rates onto default charges, which can raise the 12 fine to approximately 14.

Credit card charges to watch for are: late payments, exceeded credit limits and returned payments. However, banks and credit card companies won't immediately alert you to these charges, but will include them in the 'new transaction' part of your statement, meaning it is your responsibility to read your statement very carefully so you can act quickly if need be and avoid an increase in the penalty charge or interest charged on that penalty.

There are some banks and credit card companies who are more flexible and forgiving to their customers. An example might be a late payment to the credit card company due to money taking longer to clear your bank account because of a public holiday or similar. It is always worth contacting them and explaining the situation sooner rather than later, as they may be willing to cancel the charges. Remember: They need your custom!

Other credit card charges to watch for are charges for duplicate statements or correspondence which you may have mislaid or discarded. Banks and credit card issuers are permitted to charge you a small sum for duplications, but not much; Consumer groups or institutions like the Citizen's Advice Bureau will be able to provide you with information as to what would be a reasonable charge. You can also ask your bank or credit card company to send you a list of all their charges. Legally, they have to send this to you within 40 days. Finally, if you have been fined before, it is sensible to check how much interest you paid on the fine. It may be the case that you were paying an overly high rate of interest at the time, which you are entitled to contest.

A new wheeze by the credit card companies is offering a 0% deal on balance transfers whilst quietly charging a balance transfer fee, which is not always clear on the documentation. Currently there is a new trend for credit card companies to offer up to 13 months at 0% interest on balance transfers, but only three months at 0% on new purchases. If a balance is transferred and purchases are made, the interest charged on the new purchases after the introductory offer may wipe out any interest saved on the balances transferred. It is therefore worth considering one card for balance transfers and one card for new purchases to minimise these charges.

Finally, another credit card charge to watch for is the 'hidden fee', which banks and credit card companies are now introducing. In the past, it was standard practise for banks to charge a fee on 'premium' accounts, whereby customers paid a fee in order to secure another service, such as paying less insurance. However now the industry has started to charge customers for not using their cards; which means previously sensible credit card owners, who kept their cards in their wallets only for use in an emergency, are now expected to pay a charge for that privilege. It is therefore paramount that customers are vigilant about checking the small print before switching credit cards.

Article Source: Credit Card Bad Credit People

About the Author

Pamela Lucas, a freelance writer keen to help people make informed credit decisions - suggests it is paramount that before you apply for, or renew your credit card you read carefully the credit card charges in the small print.

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In April 2006, banks and credit card companies lost a case brought against them by the OFT for the overly high penalties they had been charging their customers. As a result, these companies have had to lower their charges (sometimes as much as 20 for a missed or late payment) to 12. However, now the banks are re-couping the money they have lost, by adding heightened interest rates onto default charges, which can raise the 12 fine to approximately 14. 
Credit card charges to watch for are: late payments, exceeded credit limits and returned payments. However, banks and credit card companies won't immediately alert you to these charges, but will include them in the 'new transaction' part of your statement, meaning it is your responsibility to read your statement very carefully so you can act quickly if need be and avoid an increase in the penalty charge or interest charged on that penalty. 
There are some banks and credit card companies who are more flexible and forgiving to their customers. An example might be a late payment to the credit card company due to money taking longer to clear your bank account because of a public holiday or similar. It is always worth contacting them and explaining the situation sooner rather than later, as they may be willing to cancel the charges. Remember: They need your custom! 
Other credit card charges to watch for are charges for duplicate statements or correspondence which you may have mislaid or discarded. Banks and credit card issuers are permitted to charge you a small sum for duplications, but not much; Consumer groups or institutions like the Citizen's Advice Bureau will be able to provide you with information as to what would be a reasonable charge. You can also ask your bank or credit card company to send you a list of all their charges. Legally, they have to send this to you within 40 days. Finally, if you have been fined before, it is sensible to check how much interest you paid on the fine. It may be the case that you were paying an overly high rate of interest at the time, which you are entitled to contest. 
A new wheeze by the credit card companies is offering a 0% deal on balance transfers whilst quietly charging a balance transfer fee, which is not always clear on the documentation. Currently there is a new trend for credit card companies to offer up to 13 months at 0% interest on balance transfers, but only three months at 0% on new purchases. If a balance is transferred and purchases are made, the interest charged on the new purchases after the introductory offer may wipe out any interest saved on the balances transferred. It is therefore worth considering one card for balance transfers and one card for new purchases to minimise these charges. 
Finally, another credit card charge to watch for is the 'hidden fee', which banks and credit card companies are now introducing. In the past, it was standard practise for banks to charge a fee on 'premium' accounts, whereby customers paid a fee in order to secure another service, such as paying less insurance. However now the industry has started to charge customers for not using their cards; which means previously sensible credit card owners, who kept their cards in their wallets only for use in an emergency, are now expected to pay a charge for that privilege. It is therefore paramount that customers are vigilant about checking the small print before switching credit cards. Article Source: <a href="http://www.allbestarticles.com" target="_blank">Credit Card Bad Credit People</a> About the Author: Pamela Lucas, a freelance writer keen to help people make informed credit decisions - suggests it is paramount that before you apply for, or renew your credit card you read carefully the <a href="http://www.mbna.co.uk/creditcards/directory.html">credit card charges</a> in the small print.