HSBC admit the are charging penalties for Breach of Contract

[TANZARELLI]

In their defence they clearly state:

12 "Finally, HSBC Bank PLC seeks a declaration in its counterclaim that none of the relevant terms and conditions and charges are capable to amounting to penalties at common law. This is because the consumer does not and did not commit any relevant breach of the relevant terms and conditions by reason of the matters complained of by the OFT and none of the charges are payable on or for a breach of contract by the customer."

However talk about shooting themselves in the foot.............

http://www.penaltyactiongroup.co.uk/...43&topic=651.0

http://www.penaltyactiongroup.co.uk/...HSBCBreach.pdf

[FANTASY CHARGES]

http://www.bailii.org/cgi-bin/markup...method=boolean


in the above case (which is the appeal) the word penalties

has been freely used without any questions being raised by the appellant to the "such usage" of the "said term" !

43......

The essential features of MBNA'S credit card business are that pursuant to contracts with its card holding customers, MBNA is required to finance their purchases by making funds available through the credit card and banking systems, ultimately for the benefit of retailers and other suppliers to those customers, equivalent to the cost of the goods and services required by the customer, less a charge ultimately paid by the retailer known as "interchange". MBNA also makes cash available, usually through ATM machines, when customers use their cards for the purpose of drawing cash. Again, the necessary funds are made available through the banking system. Customers using cards for the purchase of goods or services obtain interest free credit until the end of the month in which those purchases occurred. Thereafter, if they choose not to pay the full amount incurred by the end of the month, they pay interest on any balance unpaid. If their month end payments fall short of a stipulated minimum, they may also be liable to pay penalties. Customers who obtain cash by using their credit cards pay interest from the moment of withdrawal. The aggregate of interest, penalties and fees payable under the relevant credit card agreements are known as "finance charges".

[Glenn UK]

FWIW

Abbeys terms and conditions refers specifically to breaches of their t&c as do es their defence issued in cases prior to the OFT test case being announced.

But, they will argue its semantics no doubt.

Its funny how the courts will in some cases accept this in others they wont.

JMHO

Glenn

[TANZARELLI]

Looks like a bit of good old cloaking to me.

[sparkie1723]

Banks etc charge interset on late payment charges if you don't pay it in full with the next monthly payment, if they say its a finance charge then finance charges can't carry interest, can they?? as its then a "one off "payment?

sparkie

[tifonet]

Originally Posted by TANZARELLI

http://www.penaltyactiongroup.co.uk

New website launched?

[TANZARELLI]

Originally Posted by tifonet

New website launched?

Its been live for a while, but yes fairly new.