The OFT ruling, in its Statement of Principles, was published in April and called upon all credit card providers to reduce their ‘exorbitant penalty charges’ for late and missed payments to £12 or less.

Although Morgan Stanley initially stated its disagreement with the ruling, it has confirmed it will nevertheless reduce its fees on all the products it provides to the required level.

The clarifying statement released by the company comes a few days after Moneyfacts.co.uk issued a press release saying that Morgan Stanley was expected to ask for extra time past the August deadline to reduce its fees.

The OFT also confirmed that certain credit card providers will be exempt from these rules if they can justify the charges they levy against non-paying customers.

One such company is Egg, which requires its customers to set up a direct debit to their current account that will automatically pay the minimum fee each month unless instructed otherwise. In instances such as these, companies will be allowed to charge a higher fee.

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