Credit Card News Defaqto Warns All Credit Cards Could Charge Annual Fee 18160868

Defaqto warns all credit cards could charge annual fee

28 May 2007
Customers who do not regularly use their credit cards should prepare themselves to pay annual fees to all providers in the wake of Lloyds TSB’s introduction of such a charge, Defaqto has claimed.

Annual fees are likely to become ‘the norm’ by the end of the decade, predicted Defaqto’s head of banking David Black.

Barclaycard is allegedly considering following Lloyds TSB’s lead to bring in a fee of £20, although it has stressed the fee “for a minority of customers that simply do not use their cards” would only be introduced as a “last resort”.

But annual fees on credit cards could drive customers towards fee-free debit cards, David Black warned providers.

Other customers could choose to play credit card companies cleverly, he added, by closing down existing accounts then returning to the same provider as ‘new’ customers and benefiting once again from introductory offers such as zero per cent interest rate periods.

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Written by Editorial Team