22 October 2008
Credit card providers managed to fleece consumers for up to £1 billion over the last year by "tweaking" their terms and conditions, it has been claimed. According to uSwitch.com, credit cards have helped to plug the credit gap created by tighter lending conditions in the market for personal loans. However, the independent price comparison and switching service claims that some providers have been taking advantage of this by making subtle alterations to the small print accompanying their offers to make more money out of borrowers. For example, a number of credit card firms have reduced their interest-free periods, while others have put up their balance transfer fees. Simeon Linstead, Head of Personal Finance at uSwitch.com, said: "The credit card market is constantly evolving and even the savviest of consumers could be forgiven for not keeping pace with providers' tactical tweaks to terms and conditions." Meanwhile, American Express is urging consumers to take advantage of cashback offers on credit cards by using them to pay for everyday outgoings such as food shopping and utility bills instead of relying on debit cards and cash.
© 2008 Adfero Ltd
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