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Credit Cards

Below is a table of credit card company charges. They are a lot more similar between companies than bank penalty charges. However, from the above it can be seen if you shop around you can get a good deal. For help with this, the following web sites provide comparison services:

http://www.fool.co.uk
http://www.moneysupermarket.co.uk

Seymore Fortscue, Chief executive of the Banking Code Standards Board said..
"If I were still a poacher I woldd have a real job defending these charges. They do not appear to be related to the costs, they frequently hit those least able to pay them and they generate great resentment."
Wednesday 26th January 2006
The Guardian

Barclaycard appear to specifically target those who pay their balance on time.
BRITAIN biggest credit card is penalising thousands of prudent customers who pay their balance in full each month. Barclaycard is cutting the period in which customers are allowed to clear their debt by up to six days. The sudden change means people can find they unexpectedly miss the payment deadline, leaving them vulnerable to a £20 penalty. Officials at Barclaycard, which has more than nine million accounts, claim the practice is standard across the industry. However, critics argue it is part of a wider pattern. Credit card company MBNA triggered an outcry last autumn after it started imposing an annual fee on some customers of up to £25. It appears the company specifically targeted those who paid their balance on time and so deprived MBNA of the opportunity to make money out of them. The public is constantly being told by the Government and others that there is a need for caution when taking on debt. However, at the same time finance companies are actively penalising those who are prudent. The Barclaycard revelations follow a recent finding from the Office of Fair Trading that credit card penalty charges are both unfair and too high.
Source , Daily Mail
8 February 2006


Banks make millions from "Unfair" credit card charges
THE big banks have been accused of using bogus accounting practices to cheat millions of credit card customers with late payment and other penalty charges. The Office of Fair Trading has written to all the main credit-card issuers asking them to explain how they calculate fees for customers who exceed their credit limit or pay late. They believe that many of the charges may be in breach of consumer contract law.

Banks are likely to have to slash the charges or face prosecution. Until now banks have stubbornly refused to reveal how much money is made on “late-payment” and “over-limit” credit card fees, despite repeated demands from consumer groups and the Commons Treasury Select Committee. However, Barclaycard, the leading credit card company, which made profits of £722 million last year, reported that 43 per cent of its operating income was generated from fees and charges.
The Times
27th October 2004


The Banks even over rule MPs. MPs tried to slam card firms over hidden charges
The Treasury select committee says card issuers are skimming money off their customers The select committee wants to make sure penalty charges accurately reflect the costs borne by the card issuer. However, firms are reluctant to hand over details of their costs. The best replica watches uk store for men.

Ian Barber of Barclaycard said:
“Nobody has responded to the Treasury select committee on default charges because it does not have the legislative power to force companies to submit commercially sensitive information of this kind.”
The Sunday Times
24th October 2004


Barber Of Barclay Card said:
“Many companies refuse point blank to lend to customers with poor credit ratings. We feel it is better to let people in this position have a credit card, albeit one with a higher rate.

It is difficult to see how this is better for the person concerned, the only person it helps is the bank to more charges when they default on payment.

Recently whilst taking to a senior custody staff member she revealed that the people who come in often have been given credit cards and when they are charges for failing to meet responsibilities instead of it acting as a deterrent as the banks pretend they wish the charge did, instead they go and get more credit to cover it, what a brilliant control mechanism.

CREDIT CARD LATE PAYMENT OVER CREDIT BOUNCED PAYMENT
American Express £25 £25 £25
Abbey £25 £25 £25
HSBC £20 £20 £25
Nectar (by Amex) £20 £20 £20
Egg Card £20 £20 £20
Morgan Stanley £20 £20 £20
Tesco £20 £20 £20
Barclay Card £20 £20 £20
American Express Red £15 £15 £15