For years the credit card companies have been hitting their customers with excessive charges every time they go over their agreed credit limit or make a late payment.

But consumer law says that credit card companies can only charge a fee that covers the costs of late payment or exceeding a card limit – they can’t fine you or levy a charge that is over and above this cost.

In 2006 the Office of Fair Trading took a close look at the issue and decided that a fee of £12 was fair, higher fees were not. On the back of this advice many credit card companies adjusted their charges to £12 but some companies kept them higher than this.

If you’ve been paying credit card charges higher than £12 you could claim up to 6 years worth of overcharges back – plus interest.

How to Make a Claim

The first thing to do is make a complaint to your credit card company telling them that you believe their charges were unfair in light of the Office of Fair Trading recommendations. If your complaint is rejected by your credit card company you could go to the Financial Ombudsman Service for advice. They will look into your complaint and could potentially over-rule the decision made by your credit card company.

If you don’t have the time or energy to go it alone you could try a reputable claims management company. To find a good claims company it’s advisable to go to a respected trade body such as APCM and look at their members.