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Hidden surcharges for paying with a debit or credit card have been banned in the EU and will help “millions of customers avoid rip-off fees”.
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The ban came into force on January 13 and is being enforced by Trading Standards which will have the power to take civil enforcement action against traders who breach the regulations.
The Treasury said this ban will help millions of UK consumers to avoid rip-off fees when spending their hard-earned money.
The ban also means that customers are entitled to a refund of any unlawful surcharges they have paid and enables them, if necessary, to take legal action to recover any such surcharges.
It also means that it will be unlawful for retailers to charge additional fees when someone uses other payment systems such as PayPal to make a purchase.
The Treasury said this will ensure consumers can be confident that there won’t be any “nasty surprises”, and they won’t be penalised for wanting to pay in a particular way.
John Glen, economic secretary to the Treasury, said: “It’s completely unfair for someone to be hit by a hidden fee just before they are about to make a purchase, so by scrapping these rip-off charges we are helping to give power back to the consumer.
“As we build a fairer society, this added transparency ensures buyers can make informed choices about how they spend their hard-earned money.”
The Treasury also explained how surcharging has become commonplace and it is estimated to have cost Brits £166m in 2015.
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