Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
US Presidential Election Year Stock Market Seasonal Trend - 29th Nov 24
Who controls the past controls the future: who controls the present controls the past - 29th Nov 24
Gold After Trump Wins - 29th Nov 24
The AI Stocks, Housing, Inflation and Bitcoin Crypto Mega-trends - 27th Nov 24
Gold Price Ahead of the Thanksgiving Weekend - 27th Nov 24
Bitcoin Gravy Train Trend Forecast to June 2025 - 24th Nov 24
Stocks, Bitcoin and Crypto Markets Breaking Bad on Donald Trump Pump - 21st Nov 24
Gold Price To Re-Test $2,700 - 21st Nov 24
Stock Market Sentiment Speaks: This Is My Strong Warning To You - 21st Nov 24
Financial Crisis 2025 - This is Going to Shock People! - 21st Nov 24
Dubai Deluge - AI Tech Stocks Earnings Correction Opportunities - 18th Nov 24
Why President Trump Has NO Real Power - Deep State Military Industrial Complex - 8th Nov 24
Social Grant Increases and Serge Belamant Amid South Africa's New Political Landscape - 8th Nov 24
Is Forex Worth It? - 8th Nov 24
Nvidia Numero Uno in Count Down to President Donald Pump Election Victory - 5th Nov 24
Trump or Harris - Who Wins US Presidential Election 2024 Forecast Prediction - 5th Nov 24
Stock Market Brief in Count Down to US Election Result 2024 - 3rd Nov 24
Gold Stocks’ Winter Rally 2024 - 3rd Nov 24
Why Countdown to U.S. Recession is Underway - 3rd Nov 24
Stock Market Trend Forecast to Jan 2025 - 2nd Nov 24
President Donald PUMP Forecast to Win US Presidential Election 2024 - 1st Nov 24
At These Levels, Buying Silver Is Like Getting It At $5 In 2003 - 28th Oct 24
Nvidia Numero Uno Selling Shovels in the AI Gold Rush - 28th Oct 24
The Future of Online Casinos - 28th Oct 24
Panic in the Air As Stock Market Correction Delivers Deep Opps in AI Tech Stocks - 27th Oct 24
Stocks, Bitcoin, Crypto's Counting Down to President Donald Pump! - 27th Oct 24
UK Budget 2024 - What to do Before 30th Oct - Pensions and ISA's - 27th Oct 24
7 Days of Crypto Opportunities Starts NOW - 27th Oct 24
The Power Law in Venture Capital: How Visionary Investors Like Yuri Milner Have Shaped the Future - 27th Oct 24
This Points To Significantly Higher Silver Prices - 27th Oct 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

The Aftermath of the OFTs Credit Card Fee Capping Continues…

Personal_Finance / Credit Cards & Scoring Apr 18, 2007 - 01:01 PM GMT

By: MoneyFacts

Personal_Finance

Michelle Slade, personal finance analyst at moneyfacts.co.uk – the money search engine, comments: “It’s now almost a year since the OFT capped credit card penalty fees at £12, but the repercussions are still rumbling on with little sign of letting up. In the last two weeks alone a further seven providers have increased rates or fees (see table below).

“While other factors, including levels of bad debts will have an impact, it cannot be disputed that the OFTs actions has spread the cost burden to a much wider customer base, with card providers continually seeking ways to recoup this lost revenue.


“And its not just rates which are increasing; balance transfer charges, cash withdrawal and foreign usage fees are rising, and card providers are introducing service charges, for example duplicate statements or tracking of address charges.

“Card providers are also making changes to their card terms, for example increasing interest free days. While this may sound great for the consumer who pays their balance in full each month, for anyone carrying over a balance, the credit card company gains interest revenue from these extra days.

“Here just some of tactics card providers have used:

• Increasing purchase interest rates
• Increasing cash withdrawal interest rates
• Raising balance transfer fees
• Raising cash withdrawal fees
• Raising foreign usage fees
• Introducing duplicate statement fees
• Introducing low usage charges
• Introducing monthly fees
• Introducing address tracking charges
• Decreasing the number of interest free days
• Amending the order of repayments

“Perhaps the OFT has realised the consequences of its actions, and may be the reason why it is not taking such a knee jerk reaction with the current account market.

“With these abundance of credit card changes afoot, it is even more important that you review your card regularly to ensure you are getting the best possible deal. And when your provider sends through revised terms and conditions, however tiresome it may be, take the time to read the changes being made, as there is a good chance that it could result in your card costing you more.

By Michelle Slade,
http://www.Moneyfacts.co.uk


© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in