Charges dropped - but will rates rise?

This is Money reported last week that credit card charges have fallen into line with the OFT's directive to reduce their card fees to £12, which is great news. The slowest to react are greedy GE Money and Clydesdale & Yorkshire Banks which are only reducing their fees as of September 1 - the cut-off date imposed by the OFT. Others, like Sainsbury's and Capital One only got around to reducing their fees last week. You can see who was first off the mark by checking this table.

Not all banks have rushed to make up the losses by increasing the card rates, but they are steadily rising. First Direct has starting imposing a new charge - £5 for each unpaid cheque and direct debit on their current accounts. Several others, including Nationwide, have increased the cost of their PPI.

Let us know about any new charges you see creeping into your credit card or current account.

- Sascha, This is Money

PS - You can find a cheaper card deal on our card finder.

Comments

[Peter Godfrey]

In my opinion, it should be made far more clear, not least to the Banks, that the OFT did not suggest that £12 should be regarded as a standard flat amount but more so a maximum that banks may charge and furthermore solely for the purpose of recovering any extra administrative costs they may have incurred as a direct result in relation to a specific default.
As I understand the OFT ruling, banks are not allowed to profit by applying such a charge and if they fail to justify what they have charged, one is entitled to challenge its validity, albeit it in a Court of Law if necessary, and reclaim either all or in greater part.
I am further of the opinion that banks' extra costs in such cases are almost invariably negligible for most if not all of these charges so applied, and as such, they are still contravening the OFT 5 April 2006 ruling.

[Andy Fairless]

My northern rock base rate tracker credit card will attract a £2 per month charge as of 1st november.

[eleanor graham]

MISSING LLYOD TSB STATEMENTS.
I noticed on my June statement that there was a twelve pound charge made for late payment of Mays account.
I thought this was unusual as I usually pay an amount off immediately.
I checked my old statements and could not find Mays statement although I had all of the previous twelve months.
I went to the bank to make a payment and mentioned the fact that I could not find Mays statement. The cashier mentioned that there had been a problem with these statements and she would look into it.
The following day I recieved two phone calls advising me yes there had been problem and I would recieve a refund of the charge on my Julys statement
This did not happen so I had to go to the bank again today.
The cashier phoned LloydsTsb credit card and they apologised and promised it would be on the August statementlets hope so!!!!
My questions are
The bank once it identified this problem should have written to all concerned and apologised.
How many others have had this charged made and not noticed the charge ???/

Will the bank charge interest for this deduction;?.

Should the bank pay interest to the customers concerned?.

Can you publicise this to warn other unsuspecting customers.