You are here: Home - Credit Cards & Loans -

Providers begin to reduce charges

0
Written by:
04/10/2006

Credit card charges have been reduced by 45 providers a month after the Office of Fair Trading (OFT) ruling that penalties should be £12 or less, Moneyfacts.co.uk has revealed.

The OFT gave providers until 1 September to reduce their charge levels but Moneyfacts.co.uk has found that 45 of the 60 card providers listed on the financial information site have agreed to reduce their charges, with more than two thirds already putting a new lower charge in place.

Although 15 providers have not reduced their charges as yet, two – Co-operative Bank and American Express – have reduced their fees below the £12 threshold, to £11 and £8 respectively. The ruling on charges has, however, also resulted in policy adjustments, such as increased interest rates from Barclaycard, a £5 unpaid direct debit and cheque fee from First Direct and an uncapped 3% balance transfer fee from Halifax/Bank of Scotland.

Andy Britchford, personal finance analyst at moneyfacts.co.uk, said: “While the reduction in fees can only been seen as a positive step, it is merely treating the symptoms and not the cause. Lenders should be more proactive, providing early support, advice and information.

“A longer term, more responsible approach to lending, with particular focus at the initial application stage could perhaps reduce some of the massive bad debts many face. Surely it is better to prevent these charges and unmanageable levels of indebtedness rather than just reduce the consequential fees.”
 

Tagged:

Tag Box

Debt

Pension

Spending

Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

YourMoney.com Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
The cost of learning

Many parents and students significantly underestimate the debts they will run up if they go on to further education. Mike...

Close