The Royal Bank of Scotland (RBS), the second largest bank in the UK, is to begin charging its credit card customers £12 if they fail to tell it that they have moved.

From 1st May, NatWest, RBS and Mint – all part of the larger RBS Group – will charge £12 to trace a customer if they forget to tell the bank that they have changed address. The fee will be applied once the bank has received two returned statements in the post.

Banking analyst Robin Long said: “Customers really should tell their banks – and everyone else – when they move, but charging £12 as a penalty fee for those who may forget seems pretty steep to me.

“Last April, the Office of Fair Trading imposed a £12 cap on penalties for customers who went over their credit limit or missed a payment. Before that, the card providers would charge over £20, which was widely regarded as excessive.

“Since then, the credit card providers and banks have come up with loads of schemes to recoup some of the lost revenue. This move would seem to come into that category and you have to wonder what else is in the pipeline.”

The move is seen as another incentive for consumers to compare credit cards before they take a product.