Don’t let the bank use the postal strike as an excuse to take your money
Posted on 15. Oct, 2007 by Cashzilla in banking, credit cards
| Usually receiving emails from financial organisations are about as useful or welcome as a punch on the snout, however a recent one I received from Moneynet could prove a worthwhile reminder.
“There is nothing more annoying than being penalised by your credit card company for paying your bill a couple of days late but millions of card holders are now at risk and the credit card companies could clean up thanks to the recent series of postal strikes. Despite the fact that credit card companies have recently been forced to reduce their late payment charges they are still raking in money from people who are paying late. Most companies now charge £12 for late payments – notable exceptions being Amex who only charge £8, Saga who charge £10 and Egg who charge a whopping £16! |
So, what can you do to make sure that you’re not one of those unnecessarily lining the coffers of your credit card company? During this current round of postal strikes there are two risks – firstly, you may not receive your statement as usual but it’s unlikely that credit card companies are going to be too sympathetic if you subsequently don’t make your minimum payment or make it late. They will argue that the onus is on you to ensure that your payment is made on time so the sensible thing to do is to take a pro-active stance and either telephone your card company for details of your minimum payment or alternatively go online to access your statement.
A second risk is faced by the millions of customers who send a cheque for payment through the post. If you usually post your cheque then it would be sensible to adopt an alternative payment method whilst this situation lasts. You can either make payment through your bank (you will find details of how to do this on the reverse of an old statement) or, if you use online banking, you should be able to transfer the money direct. At least that way you take away the risk and ensure that you avoid any additional charges.
And don’t forget that late payment charges are not exclusive to credit cards. Many utility companies, including BT, impose penalties for late payment. With this in mind it could now be a good time to consider setting up a direct debit for the payment of regular bills. This not only ensures that you avoid the risk of late payment charges but in many cases you will also be eligible for a discount if you’re prepared to pay by this method. For example British Gas is quoting discounts of up to £68 p.a. for paying by direct debit.”
After tussling with my local bank recently, I can testify that there are in fact more annoying things, than “being penalised by your credit card company for paying your bill a couple of days late”, however it is extremely irritating and it is definitely worth pointing out that even if you don’t receive your statement, that will not stop your bank, credit card, or utility provider wanting payment, so whilst the postal strike may at first seem like a simple nuisance, delaying a delivery from Amazon, it could actually cost you dearly if you don’t pay attention.
Related personalfinanosaurus posts:
