A protest is set to take place outside the Office of Fair Trading’s (OFT’s) headquarters this Friday.
Aimed to demonstrate against the lack of legislation regarding default and late payment fees charged by lenders, the protest has been organised by Penalty Charges, iva.co.uk and the Consumer Action Group.
In April, the OFT deemed any default credit card charge over £12 as “unfair”, however it did not believe that legal action against lenders who fail to comply with this recommendation would be necessary at that time.
Therefore, the protest has been organised to display the dissatisfaction from consumers that the government and the OFT have failed to take action in this matter so far.
In addition, the OFT’s ruling that borrowers were entitled to claim back these charges has not been complied with by some banks, meaning that many consumers are still out of pocket.
“The OFT is not ensuring that consumers are able to reclaim these unfair bank charges back as required by law,” said Stephen Hone, spokesperson for iva.co.uk and director of Penalty Charges.
“This failure is leaving hundreds of thousands of people in unnecessary financial difficulty at Christmas and throughout the year,” he added.
In addition, iva.co.uk carried out a survey to support the protest, which found that 95 per cent of borrowers had paid default charges in the last year.
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