Cardholder disputes favouring consumers
By UK CreditCards.com
Consumers are consistently winning in cases against credit card providers involving the Financial Ombudsman Service (FOS).
According to a report in the Sunday Times, the body comes down on the side of consumers in the majority of cases. Of 18,000 credit card-related complaints the FOS has received in the last year, three-quarters fell in the complainants' favour.
The FOS mediates in cases between financial services companies and members of the public. In cases involving interest rates, the level of success for consumers was even greater.
"Almost all the credit card companies subsequently chose to settle the complaints that had been brought against them, rather than have our investigation continue," the FOS told the newspaper.
Credit card firms were hit with new regulations from the government earlier in the year, when they were banned from sending unsolicited credit card cheques and upping borrowers' limits without prior permission.
Prime minister Gordon Brown told consumer watchdog Which? that these practices were not only irresponsible, but were "immoral".
Published: 1 June 2009
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