The return of underhand credit card companies

19 March 2014

Three years ago, credit card companies were helping us to pay off our debts as quickly as possible. But now, thanks to new EU rules which stop card companies making as much money from customers, sneaky tricks, hidden fees and rising rates could rear their ugly heads.

credit-card-melting

In February, the European Parliament approved a limit on transaction fees for retailers, which means that credit card companies will make less money. How are they going to claw it back? From the poor debt-ridden cardholders, of course!

Some card companies have raised card limits through the roof, in the vain hope that you’ll spend more and get into more lovely, stinking, profitable debt. Others are reducing the amount you pay each month so it takes longer to clear the balance on your card.

Charges are already increasing, too. M&S Bank, Nationwide and Tesco have already raised their interest rates. Barclaycard customers are paying more to use their card abroad – they recently raised their overseas charges from 2.75% to 2.99%.

What can we do about it? Well, customers are allowed some control over having their limits raised – but you have to tell the credit card company yourself. Otherwise, it looks like it's back to the bad old days...

TOPICS:   Banking   Consumer Advice   Credit Cards   Complaints   Economy

1 comment

  • Rob
    what a pointless post, i'm surprised youve not mentioned that card companies will cancel the interest free agreements if you miss a payment. Dont get in card debt is a simple solution. As regards your points Its a personal decision whether you spend more if they increase their limit. Some people may prefer to pay a lower amount each month so leaves options open. They arent saying you can only pay the minimum off each month so whats the issue?. Its a personal decision to get in card debt. The increase in overseas fees is neglible, 24p in ever £100 isnt exactly a " return of underhand credit card companies"

What do you think?

Connect with Facebook, Twitter, or just enter your email to sign in and comment.

Your comment