12 deadly credit card sins
Credit card companies are guilty of utilising a dozen “devious” measures through which to collect more cash from their customers, it has been claimed.
Price comparison website Fool.co.uk said that the “traps” not only targeted those already in debt, but also those who used their cards sensibly. The sudden introduction of annual fees, “too good to be true” typical APRs and “hidden” conditions attached to balance transfers are among the 12 measures identified as being employed by credit card firms.
Consumer groups often view such measures with suspicion giving rising debt levels in the UK.
“The best way to combat these offensives is to read any material sent to you by your card provider to ensure that no changes to the terms are made without your knowledge,” said David Kuo, head of personal finance at Fool.co.uk.
Criticism relating to hidden charges attached to credit card usage comes as the Office of Fair Trading (OFT) announces a new “in-depth” study into retail bank pricing.
In a statement today, the regulator said that after an initial review it had decided to launch a full investigation into the matter as a result of public concern over the threatened introduction of charges for current accounts.
The OFT’s latest probe follows its decision in April last year to limit the default charges credit card companies can levy against borrowers at up to £12 after concluding that they had been previously set at a “significantly higher level” than was legally fair.
People seeking an alternative to bankruptcy may wish to take out an IVA.
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