PRICELESS: Annual fee to have a Credit Card

Discussion in 'Finance, Property, Law' started by Jailorinummqasr, Nov 13, 2006.

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  1. Keep em all

    0 vote(s)
  2. Keep only one

  3. Give them all up

  4. Don't care as I don't have one

  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.....


    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. 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. 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. I think a Festive christmas tree shape would be in order.

    Better still use two cards and make a 3D tree..
  9. 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.

  11. 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?
  12. 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?
  13. 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!

  14. 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.