uSwitch Credit Card news August 2005

On 26th July 2005 the Office of Fair Trading (OFT) started consultations with eight major credit card companies on its provisional conclusion that the levels of default charges (e.g. for late payments) they impose are excessive.

Customers often only become aware of these charges after they have been penalised. This is hardly surprising, as despite improvements with the introduction of summary boxes, the actual terms and conditions can present a daunting proposition to read. The reality is that many users are confused by or put off reading them by their sheer length and complexity.

Many customers are disconcerted by the ‘hidden charges’ levied by credit card providers. Unfortunately, many products in a competitive market offer a low return for providers, so they have become reliant on these charges.

Customers must take the time to research their choice of credit card provider and check all the small print, as there is often a huge difference between the best and worst credit cards when it comes to ‘hidden charges’.