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13/11/2006
Annual credit card charges could return
A report from PricewaterhouseCoopers (PwC) says that annual fees for credit cards could be set to return.
Rules changes which could see credit card companies lose out to the tune of £1 billion a year may mean that annual fees and interest rates will rise, according to 'Precious Plastic 2007', the latest study of the UK consumer credit market from PricewaterhouseCoopers LLP.
PwC research revealed that credit card margins continued to fall in 2006, as the industry came under unprecedented scrutiny from the Office of Fair Trading (OFT), the Competition Commission and the Financial Services Authority.
The OFT decided to cap credit card default charges in the interests of card users.
PwC predicts a 'waterbed effect', whereby charges pushed down in one area pop up somewhere else, for example, card issuers would have to levy annual fees costing the average credit card user £35 a year to recoup the potential £1 billion loss.
The latest report also revealed that UK consumers have overtaken the US in terms of debt penetration.
Individual Voluntary Arrangements (IVAs) and bankruptcies are being set up at a rate of one a minute every working day.
Spending on the high street using debit cards surpassed cash for the first time in 2005, up £7 billion to reach £89 billion on the year.
(SP/KMcA)
Rules changes which could see credit card companies lose out to the tune of £1 billion a year may mean that annual fees and interest rates will rise, according to 'Precious Plastic 2007', the latest study of the UK consumer credit market from PricewaterhouseCoopers LLP.
PwC research revealed that credit card margins continued to fall in 2006, as the industry came under unprecedented scrutiny from the Office of Fair Trading (OFT), the Competition Commission and the Financial Services Authority.
The OFT decided to cap credit card default charges in the interests of card users.
PwC predicts a 'waterbed effect', whereby charges pushed down in one area pop up somewhere else, for example, card issuers would have to levy annual fees costing the average credit card user £35 a year to recoup the potential £1 billion loss.
The latest report also revealed that UK consumers have overtaken the US in terms of debt penetration.
Individual Voluntary Arrangements (IVAs) and bankruptcies are being set up at a rate of one a minute every working day.
Spending on the high street using debit cards surpassed cash for the first time in 2005, up £7 billion to reach £89 billion on the year.
(SP/KMcA)
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OFT clamps down on credit card charges
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Car Fuel By Credit Card 'Costs More'
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Car Fuel By Credit Card 'Costs More'
Nearly two thirds of domestic petrol purchases are made by credit card, according to new research by a credit group. The findings by Equifax reveal that more that 58% of us use credit cards to pay for our fuel, just as a further rise in petrol prices is to be debated by MPs in the House of Commons.
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