Postal strikes could mar credit ratings

| September 23, 2009 | 0 Comments

The ongoing postal strikes will leave many credit card holders with a black mark on their credit rating, said this week.

The price comparison site made the remarks after discovering that credit card customers have incurred £150 million of late payment fees due to the postal strikes.

“A £12 late payment fee is not the only problem for these consumers as missed payments will also have a detrimental impact on credit records,” said Rumina Hassam, personal finance expert.

Credit card companies may refund customers who explain the reason for late payment, Hassam said, but the mark on customers’ credit rating is likely to remain.

“Unfortunately, even if your provider offers a refund, the missed payment could still show up on credit records.” Hassam said.

“This may not happen immediately as these reports as not always updated straight away so it’s really important to keep an eye on this over the coming weeks.”

Hassam said the best way to avoid late payment fees is for customers to set up a direct debit payment with their provider.

“That way you will never be caught out again,” she said.

Late payment fees are “an extremely lucrative practice for providers, people shouldn’t add to this growing pot of income,” she concluded.

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