Twenty-three per cent of adults, 10.2 million Britons, were subject to credit card charges over the last 12 months, amounting to a massive £230 million says online comparison site moneysupermarket.com.
Despite the Office of Fair Trading’s ruling last year that such charges are disproportionate to the action they are enforced for, such as defaulting on repayments, credit card charges are still costing customers dearly.
A similar clampdown was also made by the OFT on current account charges for things like unauthorised overdrafts and bounced cheques.
Moneysupermarket’s research also found that only 12% of credit card holders would like to see such charges replaced by an annual or monthly fee. Rob Kenley, head of credit cards at price moneysupermarket, said:
“The results suggest a big thumbs-down from consumers for annual or monthly fees. If providers were thinking about introducing them, they would have to offer cardholders much more than simply replacing penalty fees. Even longer 0 per cent introductory offers or higher cashback offers spring to mind as a starting point."
“Penalty fees still affect a significant proportion of the population”, he continued, “and providers are raking in some hefty cash – even after the OFT-imposed £12 cap.”
Learn more about unfair bank charges
and how to claim them back