How Do I Make a Credit Card Charge Claim?

In order to make a claim, borrowers simply need to write a letter to their credit card company outlining past charges that they believe are illegal and how much they wish to reclaim.

Unfortunately, most credit card companies will play hardball and try to dissuade their customer from continuing with their claim.

They may respond by sending a letter explaining that the charges were detailed in the terms and conditions of the contract and are therefore legal, or decide to make a partial offer.

For those that have requested a full refund, this offer may be the difference between the actual credit card charge and £12.

However, if the credit card company fails to respond to their customer’s claim, rejects their request, or the customer feels the partial offer is inadequate, then the next step is for them to threaten to take the case to court ( the small claims court in most cases) or to the Financial Ombudsman.

The Financial Ombudsman Service (FOS) is a free and independent service created by the government to help settle disputes between financial companies and their customers. Most people prefer using the FOS as it is free for consumers, less risky and generally more successful than going to the courts.

In addition, those that choose the FOS can also take court action if they are not satisfied with the Ombudsman’s decision and don’t mind waiting longer for a payout.

Court action is usually carried out through the Small Claims Court System. The main advantage with the courts is that it can be quicker than the FOS as most lenders don’t defend, meaning the account holder wins by default and gets an automatic payout, which includes the 8% interest.

This service comes with a starting fee from £25 to £100, depending on the amount being reclaimed, but is refunded in full if the claim is successful.

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