14 May 2008
Millions of credit card customers have been hit by changes to their accounts over the last 12 months, according to new research from uSwitch.com.
During this period, some 2.5 million have been advised by their credit card companies that they will be charged a fee, have their credit limit reduced or have their account closed down, the findings indicate.
The independent price comparison and switching service has raised concerns that providers are not being completely open about the reasons for these changes.
Simeon Linstead, head of personal finance at uSwitch.com, said that providers are right to curb overspending if customers' debts "are genuinely getting out of hand".
"However, resorting to account closures, reducing credit limits and implementing annual or monthly fees without providing over one in four people with a reason for doing so is not good for consumer confidence or financial planning," he commented.
Meanwhile, consumers seem to be continuing to face debt problems, with data from the Insolvency Service revealing that in the first three months of 2008, 15,651 individuals declared bankruptcy.