News

Credit card companies implement 'new fees'

Credit card companies implement 'new fees'

• Pay off those credit cards with a remortgage or loan

 

Credit card lenders are taking new action to help claw back some of its lost profits due to the after-effects of the credit crunch, uSwitch.com has said.

A survey by the firm has revealed that in the past year, 2.5 million customers have either had their account closed, their credit limit reduced or been notified of the introduction of an annual fee.

Only 16 per cent of plastic loans customers subjected to these changes had missed monthly payments or exceeded their credit limit in the past 12 months, uSwitch.com discovered.

Head of personal finance at uSwitch.com Simeon Linstead said that the trend is "getting out of hand" and urged lenders to be more transparent in their dealings.

"Credit card companies who are taking action to close down or make changes to customers' accounts must be completely open about how and why they have selected those customers," he said.

Head of personal finance at Fool.co.uk David Kuo recently suggested that credit card lenders are declining some applications as they only have a limited amount of funds.

Your home may be repossessed if you do not keep up repayments on your mortgage.

The news articles on our website are produced by Adfero Ltd and do not in any way represent the thoughts and opinions of anyone associated with mdnationwide limited. They are purely here for the reader to obtain the latest news and breaking news from the world of finance.