5 June 2006
HBOS has become the latest bank to lower its credit card charges in response to recommendations from the Office of Fair Trading (OFT).
Its default charges, levied for late or defaulted payments, will now be reduced to the OFT's recommended maximum of £12. The new charge will come into effect in August.
The move by HBOS follows soon after the decision by Barclaycard, Lloyds TSB and HSBC to reduce their credit card penalty charges.
Doug Taylor, personal finance campaigner at Which?, said that he was pleased to see the change.
"Which? is pleased that these providers have acknowledged that their credit card charges are too high. We welcome their decision to cut the charges and hope other banks and credit card providers follow suit," he said.
"We still do not know whether the £12 actually represents a fair charge and repeat our call to all providers to open their books to scrutiny and show the true costs involved."
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