Credit card companies ’still overcharging’
Posted 2008-01-18
MoneyFacts.com has suggested that credit card companies are attempting to get around tough new penalty fee regulations by increasing charges elsewhere.
The Office of Fair Trading last year forced providers to lower their fines for late or missing credit card payments from £20-plus to just £12 in a bid to more fairy reflect the actual costs incurred by lenders.
But according to MoneyFacts.com, many major credit card providers have simply responded by increasing fees in other aspects of their services, for example by reducing balance transfer offers.
One of the personal finance websites spokespersons urged all credit card users to look at the small print on their contract so as to be sure they are always getting the best available deal.
She commented: “When your provider sends through revised terms and conditions take time to read the changes as there is every chance your credit is costing you more.”
The website also noted that many interest-free balance transfer deals now entail a historically-high fee of around three per cent, adding some £55 to the average credit card debt of £1,859.
January 24th, 2008 at 8:14 am
My Credit Card company, Premier just charged me a 25.00 late fee for being one day late because of the mail, which threw me into a negative balance, so they charged me 20 dollars for the negative balance and 6 dollars for a processing fee, all that plus my 20 dollars I now owe for the next payment. How am I suppose to catch that all up? I am on SSI, which they knew from the very beginning.