7 April 2008
Credit card companies are starting to hit consumers in new ways after missed repayment charges were capped by the Office of Fair Trading, it has been argued.
Julian Knight wrote in the Independent that consumers are being charged to take out money from ATM machines, hurt by balance transfers and higher interest rates.
Moreover, some customers are being ditched altogether if service providers claim that they are not using their credit cards enough or if they are paying back the money they owe, Mr Knight asserted.
He commented: "Many people who never miss a repayment are now being hit in the pocket. Fortunately, some firms - such as the AA, Barclaycard (Simplicity Visa) and Britannia - have so far steered clear of piling on the fees and upping rates."
Mr Knight added that people should always to check to see if any charges are to be imposed on them and then to make a considered choice.
Last week, a number of analysts told the evening Standard that credit cards are being used to fund mortgages.