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`Sharp rise` in credit card fees
7 November 2007
Credit card companies have increased more than a hundred fees and charges in the past two months, according to a new survey.
As the uncertain financial situation hit all parts of the industry many banks, building societies and credit card companies increased charges on everything from balance transfer fees to cash withdrawals, Moneyfacts found.
Nearly 70 types of card have put up cash withdrawal fees, while 18 have been hit by higher foreign usage charges, forcing many consumers to seek debt advice. Financial advisers are asking consumers to shop around to avoid credit card debt.
"It seems as if the credit crunch is beginning to cause credit card chaos. 125 fee and rate increases inside two months is quite staggering. With the majority of increases staying away from the headline purchase rates, the fee and rate increases are less in the public view and often tucked away in lengthy terms and conditions."
Last week, a study by Nationwide found that consumers were paying a total of £500 million in unnecessary interest payments.
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