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Consumers against credit card fees, study shows

Wed, 25 Jul 2007

Credit cards holders do not want to replace penalty fees with monthly or annual fees, a study by a price comparison website has shown.

Moneysupermarket.com says only 12 per cent of credit card users want monthly or annual fees despite the fact that 23 per cent of British adults paid £230 million pounds in penalty fees in the last year.

Head of credit cards at moneysupermarket.com Rob Kenley warns: "Penalty fees still affect a significant proportion of the population and providers are raking in some hefty cash."

Consumers will not want to see monthly or annual fees imposed and credit card companies may have to introduce higher cash back offers to satisfy credit card users, he adds.

The Office of Fair Trading imposed a £12 cap on penalty fees last year however the price comparison website calculated that 13 per cent of fee-payers were charged five times in a year, totalling nearly £80 million.

Last week, consumers were advised not to lie on credit applications by the UK's fraud prevention service Cifas. According to the organisation's figures, men aged between 26 and 40 are most likely to fib on applications for credit cards.


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