OFT inaction leaves lenders owing £1.8 billion, 21st September 2006

The Office of Fair Trading confirmed in a statement earlier this month that is planning 'no further intervention' to return excessive credit card default charges to consumers. It's earlier statement in April estimated that excessive charges were costing borrowers £300 million per year, and correspondence with Debt on our Doorstep confirmed that borrowers have a legitimate claim to refunds of any excess charge made in the past six years.

However, the OFT has declined to take any action itself to obtain refunds for ripped off borrowers. In a statement to Debt on our Doorstep, it advised consumers to seek help from local advice agencies to pursue the debts in the court, and commented that it was powerless to help as all of its powers are only 'forward looking'.

Damon Gibbons, Chair of Debt on our Doorstep commented :"An estimated 6 million credit card borrowers have been left high and dry by the regulator, with lenders pocketing nearly £2 billion in the excess charges in the past six years. Despite this, and no assurances to make refunds, no action is being taken by the OFT. We call on M.P's to take this matter up with the Alistiar Darling, Secretary of State for Trade & Industry to review the powers of the OFT and for him to call on all lenders to make refunds of excessively charged amounts."