Plastic probe by OFT welcomed – but Moneynet warns credit card companies may look to ramp up other charges

Credit card holders advised to study the small print and be prepared for card companies to go on offensive in wake of OFT investigation into high charges, says Moneynet

CREDIT card companies may be looking to increase profits via alternative 'stealth' charges following this week's decision by the Office of Fair Trading (OFT) to consult with eight major credit cards on what the watchdog deems to be excessive credit card charges.

Richard Brown, chief executive of Moneynet.co.uk Moneynet.co.uk – the online financial data comparison site, said he welcomed the OFT's decision:

“But we are concerned that credit card providers may simply attempt to recoup their lost income via higher charges for all.

“Moneynet recommends credit card customers consider their options before taking out a card -and take into account all charges as well as the headline interest rate”, said Brown.

A charge of around £20 to £25 is currently payable if a cardholder fails to pay a credit card bill on the due date, exceeds the credit limit, or pays on time but by a direct debit or cheque that is not honoured.

In a statement earlier this week, the OFT said it believed it is 'unfair for the purposes of contract terms regulation to require a consumer who defaults in one of these ways to pay a disproportionately high charge.'


About the Author
Moneynet press enquiries:
Richard Brown, Chief Executive, 020 8313 9030
Consumer enquiries:
info@moneynet.co.uk
http://www.moneynet.co.uk