Postal strikes delaying credit card repayments

By UK CreditCards.com

Postal strike impacts credit scoresCredit card holders are facing negative credit ratings as a result of ongoing postal strikes in the UK.

That is according to Consumer Focus, which revealed that bill repayments and balance statements are trapped in a backlog of mail.

Industrial action by around 20,000 Royal Mail employees since July is threatening customers' credit ratings and imposing late payment fees because banks are unwilling to make exceptions for late repayments.

Consumer Focus and opposition parties called on providers to be more understanding of the effect wider circumstances can have on bill payments.

Vince Cable, Treasury spokesman for the Liberal Democrats, added: "It is simply outrageous for banks to be landing thousands of customers with yet more charges for delays that aren't their fault. Banks must be more flexible over payment delays caused by postal strikes. They should pay back these punitive charges and end this practice immediately."

It is estimated that 20m letters and parcels are yet to be cleared by Royal Mail.ADNFCR-2308-ID-19364214-ADNFCR

Published: 16 September 2009