6 June 2006
Nationwide has become the latest big high street name to lower its credit card charges, following an investigation by the Office of Fair Trading (OFT).
From June 28th, it will be charging its card holders £12 for late payments, exceeding their credit limit or for returned items.
Previously, its default charge had been £20. Many of Nationwide's competitors have already reduced charges to the £12 recommended upper limit suggested by the OFT.
Nationwide said it was lowering its charges, despite the fact that it did not believe that it was legally obliged to do so.
"However, to avoid confusion for its members, Nationwide has reduced its charges to the level recommended by the OFT," the building society said in a statement.
It also suggested that customers could avoid the charges altogether by setting up a direct debit for minimum repayments or balance clearance, extending their credit limit or by using its online banking facility to have better access to banking information.
In its ruling on credit card charges, the OFT had said that some credit card default charges were unlawfully high.
Find your perfect credit card with uSwitch.com's free and impartial credit card comparison service