Related Credit Card Article

"Credit card providers increase fees"

By admin | November 5th, 2009 | Credit Cards

Although the base interest rate has plummeted to its lowest level in the history of the Bank of England, standing at just 0.5 percent, it has been reported that some credit card providers have continues to increase their fees and rates, resulting in cardholders having to pay over the odds for their credit card borrowing in many cases.

According to one recent report two more major lenders have now increased credit card charges, following a number of other lenders and banks.

Both First Direct and M&S, which both come under the HSBC umbrella, have decided to increase credit card fees, using a change in European law to bring in these higher charges.

Amongst the charges that have been increased on these credit cards are cash advance charges and foreign exchange fees. First direct is set to increase its charges from the start of November, when its cash advance fee will increase from 2.5 percent to 2.99 percent, and its foreign transaction charges will rise from 2.75 percent to 2.99 percent.

Balance transfer fees from First Direct will also increase, rising from 2.5 percent to 2.9 percent.

The charges have already been applied by M&S for foreign transactions, with the fees increasing from 2.75 percent to 2.99 percent. The balance transfer fees on its credit cards have also gone up, rising from just 2 percent to 2.9 percent.

These increases in fees could make a big different to many customers that withdraw cash, spend on their cards whilst on holiday, or transfer balances on their credit cards.

Officials from HSBC have said that the fee increases on the credit cards are part of a streamlining and assessment of its subsidiaries, but has said that at present it has no plans to make changes to other products and services.

Tags: credit card charges, credit card fees

Related Articles:

• Nationwide credit card has no hiked fees

  It was announced several weeks ago that the financial giant Nationwide was planning to hike up the fees charged on its credit cards when used abroad by customers. The increases were set to take place as of the beginning of this month, but those heading out on holiday armed with their Nationwide credit cards over...

• Is the Zero card a good deal?

  Like other financial sectors in the UK the credit card market has suffered since the onset of the global credit crunch, which swept across the nation last summer squeezing the life out of the financial industry. Whilst the worst hit area seems to be the mortgage sector, the credit card sector has not escaped unscathed,...

• New card available from Abbey

  Spanish owned High Street bank, the Abbey, has recently launched a new credit card that could prove to be of interest to a number of people looking to save money on their credit card spending. The card eliminates a wide range of fees for a fixed period of time, and could prove valuable to those...

• New credit card launched by supermarket giant

  Consumers in the UK have a wide range of credit cards to choose from these days, and there are cards that offer different benefits for different consumers based on their needs and preferences. One thing that consumers want is a card that offers them value for money on their borrowing as well as features that...

• Common Credit Card Fees Examined

  As most credit card users already know there are other fees that may be charged to your card’s account based upon different conditions. Some are more expected than others. There are some fees that only appear if you use your card irresponsibly such as when payments are late or you go over your...

Other Recent Articles

Use of credit cards declines whilst payday loans increase

It seems that many consumers may have switching from spending on credit card that can sometimes come with high rates...

By Reno | February 10, 2012 | Read More

Useful Tips for Credit Card Holders

Modern technology offers comfort and convenience that is often helpful for people in a fast paced everyday living. With just...

By admin | February 7, 2012 | Read More

Credit card decision by Lloyds could have serious effect on charities

For many years now, a range of leading and well known charities have been able to boost the levels of...

By Reno | January 28, 2012 | Read More

Many have to rely on credit cards to make ends meet

There was a time when people had credit cards to enable them to pay for occasional larger, more expensive items...

By Reno | January 26, 2012 | Read More

Brits increasingly dissatisfied with credit card providers

According to recent reports, Brits are becoming increasingly dissatisfied with their credit card providers, particularly in the case of the...

By Reno | January 20, 2012 | Read More