Credit card charges slammed again

Consumer interest publication Which published today a scathing report on credit card charges.

The report shows how, following last years Office of Fair Trading (OFT) ruling that credit card companies must cut their penalty fees to a £12 maximum, the companies are recouping their losses by introducing new charges and raising existing ones. Given the nature of these companies and their need to continually increase profits, it's unlikely the OFT ruling has had an impact on their financial well being or that of the consumer.

The report highlights trends in annual, low usage and balance transfer fees amongst other charges. The BBC summary includes information on changes made by the leading high street names HBOS, LLoyds TSB and Barclaycard.

Like any business, the credit card companies objective is to make a profit which is why choosing the right card is so important. The same deal that was attractive a few months ago may no longer be the best option.