PRICELESS: Annual fee to have a Credit Card

What would you do, if you were charged to have a Credit Card?

  • Keep em all

    Votes: 0 0.0%
  • Keep only one

    Votes: 0 0.0%
  • Give them all up

    Votes: 0 0.0%
  • Don't care as I don't have one

    Votes: 0 0.0%

  • Total voters
    0
#1
It would seem that Annual Fees maybe coming back into vogue...

Annual fees for having a credit card could be on the way back, a study by PricewaterhouseCoopers (PWC) says.

The fees, which fell out of fashion in the late 1990s, could make a comeback as card providers try to recoup losses from new consumer protection measures.

The Office of Fair Trading's (OFT) cap on credit card default charges and its payment-protection insurance probe has hit card providers' incomes.

Fees of £35 would have to be levied to make up their losses, PWC said.....

Fees

Is £35 enough to stop you having a Credit Card?

I declined to get a credit card in the US as they wanted to charge me $70. If were charged £35 a peice for my two Credit Cards in the UK, VISA and MBNA would be losing my business.

Editted to add forth option.
 
#2
You pay interest - why should you pay a fee as well?
 
#3
I'd shove my credit cards up the issuers hoops sideways. I've got 3 cards but only ever use one. The other 2 will be cut up and sent back to the issuers if they try and charge me.
 
#4
the_matelot said:
I'd shove my credit cards up the issuers hoops sideways. I've got 3 cards but only ever use one. The other 2 will be cut up and sent back to the issuers if they try and charge me.
My thoughts exactly, perhaps we need a tread to work out which shape (of cut up credit card) does the most damage as inserted into their hoops!
 
#5
the_matelot said:
I'd shove my credit cards up the issuers hoops sideways. I've got 3 cards but only ever use one. The other 2 will be cut up and sent back to the issuers if they try and charge me.
Same here, they can shove it.
 
#6
They have been creeping back for a while now. We may be at some stage in the the not-too-distant future where almost every credit card comes with an annual fee and 'free' banking and credit is a thing of the past..
 
#7
It's not just credit cards.

First direct have said that unless accounts are funded with £1500 a month or other products are taken out they'll charge a monthly fee of £10.

£120 a year to hold a current account!

BBC news

I got a letter through the post informing me of the changes. It started with the heading "banking the way you want". I don't use the account much so I'm not going to pay for the privelidge of keeping it and of course I'm going to close the account. The bank may as well have said "take out a loan or credit card or otherwise bugger off we don't need your business". Fine by me.

Obviously First Direct aren't fussed about their smaller customers who will inevitably go elsewhere. Hopefully, however, this isn't the start of a trend.
 
#8
Jailorinummqasr said:
My thoughts exactly, perhaps we need a tread to work out which shape (of cut up credit card) does the most damage as inserted into their hoops!
I think a Festive christmas tree shape would be in order.

Better still use two cards and make a 3D tree..
 
#10
Ekman said:
It's not just credit cards.

First direct have said that unless accounts are funded with £1500 a month or other products are taken out they'll charge a monthly fee of £10.

£120 a year to hold a current account!

BBC news

I got a letter through the post informing me of the changes. It started with the heading "banking the way you want". I don't use the account much so I'm not going to pay for the privelidge of keeping it and of course I'm going to close the account. The bank may as well have said "take out a loan or credit card or otherwise bugger off we don't need your business". Fine by me.

Obviously First Direct aren't fussed about their smaller customers who will inevitably go elsewhere. Hopefully, however, this isn't the start of a trend.
Ekman,

Unfortunately this is the start of a trend and it's the law of unintended consequences kicking in yet again. The Govt has legislated to prevent banks etc charging customers with unauthorised overdrafts, bounced cheques, late payments etc what is has determined as an unreasonable amount. In addition, bad debts, and defaults on repayments, are increasing.

Result - banks are trying to maintain their margins and hence return to charging for cards.current accounts. The feckless benefit whilst the bloke who pays his bills and manages his account well ends up paying.

PAW
 
#11
Is this the beginning of the end for free banking?

Andrew Hagger, Head of News and Press at moneyfacts.co.uk, looks at the decision by First Direct to introduce monthly fees to customers who don’t meet their revised criteria, and whether this is just the tip of the iceberg when it comes to customers having to pay for their current accounts.

“First Direct has a reputation within the banking industry for its high levels of customer satisfaction. By operating via telephone and internet channels, it doesn’t have the service issues associated with running retail outlets on the high street.

“For the 15% of customers (approx 195,000 people) that First Direct estimates will be impacted by the new funding requirements, it will be interesting to see how many are prepared to make First Direct their primary bank, or are prepared to pay the monthly fee in order to continue to receive a good level of service.

“The other option of course is to close your account and transfer it to another provider, but it is surely only a matter of time before other banks and building societies introduce a similar charging structure, so you could be back to square one and potentially paying a monthly fee and be faced with poorer customer service.

“Customers have been somewhat lethargic in switching current accounts in the past, purely on the basis of interest rates on competitor products. However, when monthly charging and customer service levels are thrown into the equation, will these factors be the catalyst to make them vote with their feet?

“This move from First Direct is no real surprise, especially when only just over three months ago, Dyfrig John, Chief Executive of HSBC, hinted that a general move towards annual fees was “inevitable” when he was reporting on their first half profits.

“UK banks have struggled to make decent returns from their retail banking operations, and if the OFT investigation into penalty fees results in fee capping similar to that seen in the credit card market, it will be no surprise to see the banks looking for ways to recoup revenue by other means.”
 
#12
Surely now people have to have a bank account for things like pensions there must be legal scope to prevent Banks charging for accounts?

We're becoming 'obliged' to have them so why should we pay for them?
 
#13
Once this starts to take hold, you can bet some (most) banks and lenders will abuse it and then after about two years, public outcry will finally force the Office of Fair Trading to start a review. This will take 6-8 months and result in a 'firm statement' encouring banks not to overcharge. Cynical, moi?
 
#14
I thought that if you were in credit you get pain interest by the banks as your fee for letting the banks have your cash! If your in debt then that it what your interest payments are for, IE the carget for borrowing their money.

We take the risk that if a bank folds we can lose all our money.

So if they try and charge me then my mattress will becoming more comfy!

OS
 
#15
First Direct - Rob the poor to feed the rich. They must be running for a presidency appointment. Everyone who has an account with them should all transfer to another bank within a week (I wonder if that is possible), then watch them go into liquidation.
 
#16
They are banking on your greed. They want you to use credit so they can charge you exorbitant interest rates.

If you stick to your debit card they can't charge you and you can shove your credit cards up their nose - or any other orifice.

The government was right to cap the fees banks could charge for sending out letters etc because the banks really saw that as a nice little earner with some customers being charged up to £60 a letter. On the other hand, they don't like it when you charge them for the same service but they have to comply and pay you. I've caught a few inepts out with that one because I don't have any debt, apart from a small mortgage, and if they cause me any grief - I charge them for my time, and they pay.
 
#17
That's all well and good mucker, I can see your strategy but wait -isn't First Direct a subsidiary of HSBC? They're the world's biggest bank, no?

I'm sure I've seen it on the adverts, they have a logo in every country. Maybe not as HSBC, but as a subsidiary of theirs. Like Rodney works for Del-boy.

Just that it wouldn't even make a little scratch on their paintwork if everyone in UK binned it.

Well okay a scratch then, maybe a little dent at worst but not enough to chip the paintwork.

(I was replying to wickedwitch by the way)
 
#18
slightly off credit cards, but the government has said that all banks have to provide a free "basic" bank account to everyone, the down side is you can't have debit cards or anything with it, but they definately can't charge you for one of them
 
#19
That's what I understood. Due to pressure from Citizens Advice Bureau suggesting that people on benefits need that facility to pay standing orders and direct debits, &c.
 
#20
I have a little sympathy with the Banks, they do provide us a free service. However, the Current Account has always been seen as lose leader i.e. a means of selling us other products that generate a profit.

Sadly my bank (Abbey National) has sigularly failed to sell one product to me (less a Credit Card, which is paid off each month) the reason....There other products much like most high street banks are poor in comparison with the wider financial market. Why get an ISA from Abbey when it has a great introductory rate but a crap long term rate. I want put my money where I can leave it and basically forget about it and not have move every 6 months to earn a decent rate of interest.

The lesson surely is if you want make money, con the dumb as far as the FSA/Government will let you and then make sure that actually compete for my business, until then stop fcuking whinging about shareholders profits becuase if you do not offer qualitity products you will lose market share, and then the shreholders will be pissed off.
 
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