Reclaiming unfair credit card charges

A credit card can be a useful way to help you manage your money. But make a mistake and you’re usually faced with charges, which can be expensive. 

A credit card company is allowed to charge a default fee up to £12 each time you: 

• spend more than your agreed credit limit
  
• miss a repayment, or pay late 
  
• try to make a repayment but don’t have enough money in your account. 
  

However, if you think you’ve been wrongly charged, the fees were too high or you were having money problems, you might be able to reclaim some or all the money.

Simply follow these three steps:

If you use online banking you might be able to look back over your statements  to see what you’ve been charged.

If the information is incomplete or you can’t get it this way, contact the card provider asking for a list of all the charges taken from your account in the last six years. It’s important not to ask for credit card statements, as you could be charged a lot more for the information.

Under the terms of the Data Protection Act, card providers must reply within a month. If they don't you can complain to the Information CommissionerOpens in a new window

When you have a list of the charges, contact your card provider explaining:

• how much you’re claiming for
• any money difficulties you were having and how the charges contributed 
• why you think the charges were too high or wrongly applied. 

If your provider makes an offer, decide whether you think it’s fair based on how much you feel the charges contributed to your difficulties and distress. You can either accept this or ask for a higher amount.  

If they reply with further questions, make sure you answer them as complete and honest as possible and wait for the next response. 

If at any stage they reject your claim, you can complain for free to the Financial Ombudsman ServiceOpens in a new window. If they believe you’ve been treated unfairly, they’ll ask the credit card provider to refund you in full or in part.

Avoid using companies saying they can help you reclaim unfair credit card charges. They’ll usually take a high percentage of any compensation you’re paid back and just follow the same process you could easily do yourself. MoneySavingExpert has more information about how to reclaim unfair chargesOpens in a new window

Manage a credit card well and you’ll pay nothing in interest or charges. Here’s how: 

• Set up a Direct Debit, standing order or diary reminder to make sure you always pay the monthly repayment on time. 
• Repay the full amount each month to avoid interest, but always repay at least the minimum repayment.
• Keep track of your spending to make sure you don’t go over your credit limit –  check your credit card balance frequently to be safe. 

See full help in Managing credit well.