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Three-quarters of credit card providers have slashed charges, expert states

Wed, 12 Jul 2006

Three-quarters of credit card providers have cut their default charges following the Office of Fair Trading guidelines, an expert has stated.

The ruling, which took place six weeks ago, stated that it was unfair for customers to pay more than £12 for defaulting on credit card payments.

Each credit card provider was given three months grace period to reduce their charges, which they are now almost halfway through.

However 45 of the 60 credit card providers gave already cut their fees, in line with the instruction.

Andy Britchford, personal finance analyst from Moneyfacts, comments: "Providers have until 1 September to implement their changes and it is pleasing that many have decided to act sooner rather than later, announcing their intention or beginning to apply the new charges from as early as 20 June"

Mr Britchford also urges customers to be aware that by making regular credit card payments they can avoid fees altogether.

He advises that a "simple" method to ensure no payments are missed is to set up a direct debit, even if just for the minimum amount, as additional payments can also be made.

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