Best of the Week
Most Popular
1. The Trump Stock Market Trap May Be Triggered - Barry_M_Ferguson
2.Why are Central Banks Buying Gold and Dumping Dollars? - Richard_Mills
3.US China War - Thucydides Trap and gold - Richard_Mills
4.Gold Price Trend Forcast to End September 2019 - Nadeem_Walayat
5.Money Saving Kids Gardening Growing Giant Sunflowers Summer Fun - Anika_Walayat
6.US Dollar Breakdown Begins, Gold Price to Bolt Higher - Jim_Willie_CB
7.INTEL (INTC) Stock Investing to Profit From AI Machine Learning Boom - Nadeem_Walayat
8.Will Google AI Kill Us? Man vs Machine Intelligence - N_Walayat
9.US Prepares for Currency War with China - Richard_Mills
10.Gold Price Epochal Breakout Will Not Be Negated by a Correction - Clive Maund
Last 7 days
Fed Too Late To Prevent US Real Estate Market Crash? - 22nd Aug 19
Retail Sector Isn’t Dead. It’s Growing and Pays 6%+ Dividends - 22nd Aug 19
FREE Access EWI's Financial Market Forecasting Service - 22nd Aug 19
Benefits of Acrobits Softphone - 22nd Aug 19
How to Protect Your Site from Bots & Spam? - 21st Aug 19
Fed Too Late To Prevent A US Housing Market Crash? - 21st Aug 19
Gold and the Cracks in the U.S., Japan and Germany’s Economic Data - 21st Aug 19
The Gold Rush of 2019 - 21st Aug 19
How to Play Interest Rates in US Real Estate - 21st Aug 19
Stocks Likely to Breakout Instead of Gold - 21st Aug 19
Top 6 Tips to Attract Followers On SoundCloud - 21st Aug 19
WAYS TO SECURE YOUR FINANCIAL FUTURE - 21st Aug 19
Holiday Nightmares - Your Caravan is Missing! - 21st Aug 19
UK House Building and House Prices Trend Forecast - 20th Aug 19
The Next Stock Market Breakdown And The Setup - 20th Aug 19
5 Ways to Save by Using a Mortgage Broker - 20th Aug 19
Is This Time Different? Predictive Power of the Yield Curve and Gold - 19th Aug 19
New Dawn for the iGaming Industry in the United States - 19th Aug 19
Gold Set to Correct but Internals Remain Bullish - 19th Aug 19
Stock Market Correction Continues - 19th Aug 19
The Number One Gold Stock Of 2019 - 19th Aug 19
The State of the Financial Union - 18th Aug 19
The Nuts and Bolts: Yield Inversion Says Recession is Coming But it May take 24 months - 18th Aug 19
Markets August 19 Turn Date is Tomorrow – Are You Ready? - 18th Aug 19
JOHNSON AND JOHNSON - JNJ for Life Extension Pharma Stocks Investing - 17th Aug 19
Negative Bond Market Yields Tell A Story Of Shifting Economic Stock Market Leadership - 17th Aug 19
Is Stock Market About to Crash? Three Charts That Suggest It’s Possible - 17th Aug 19
It’s Time For Colombia To Dump The Peso - 17th Aug 19
Gold & Silver Stand Strong amid Stock Volatility & Falling Rates - 16th Aug 19
Gold Mining Stocks Q2’19 Fundamentals - 16th Aug 19
Silver, Transports, and Dow Jones Index At Targets – What Direct Next? - 16th Aug 19
When the US Bond Market Bubble Blows Up! - 16th Aug 19
Dark days are closing in on Apple - 16th Aug 19
Precious Metals Gone Wild! Reaching Initial Targets – Now What’s Next - 16th Aug 19
US Government Is Beholden To The Fed; And Vice-Versa - 15th Aug 19
GBP vs USD Forex Pair Swings Into Focus Amid Brexit Chaos - 15th Aug 19
US Negative Interest Rates Go Mainstream - With Some Glaring Omissions - 15th Aug 19
GOLD BULL RUN TREND ANALYSIS - 15th Aug 19
US Stock Market Could Fall 12% to 25% - 15th Aug 19
A Level Exam Results School Live Reaction Shock 2019! - 15th Aug 19
It's Time to Get Serious about Silver - 15th Aug 19
The EagleFX Beginners Guide – Financial Markets - 15th Aug 19

Market Oracle FREE Newsletter

The No 1 Gold Stock for 2019

OFT credit card default charges– Two years on

ConsumerWatch / Credit Cards & Scoring Apr 17, 2008 - 01:49 PM GMT

By: MoneyFacts

ConsumerWatch In April 2006 the Office of Fair Trading (OFT) declared that default charges on credit cards were too high and suggested capping these at £12. In the months that followed lenders cut these charges to £12 but in an attempt to recoup lost revenue, they hiked rates and charges elsewhere. Two years on, how much have the rates and charges on credit cards increased?


Michelle Slade, analyst at Moneyfacts.co.uk, comments: “In April 2006 the average purchase rate on a credit card was 14.9%; today this has jumped to 16.4%. Previously whereas only a select number of customers were being penalised, now all borrowers are paying the price.

“For any customer who paying their bill in full each month, the rate increase will have no impact, but with many households struggling with increasing financial pressures, those who only repay the minimum will be hardest hit. Anyone with a balance of £5,000 repaying just 2.5% per month will end up paying an additional £755 in interest from the 1.5% increase in purchase rates.

“The average interest rate for cash transactions have seen a marked increase from 18.1% to 24.3%. On top of this the majority of institutions have increased their cash advance charges. Previously the majority of institutions charged 2%, min £2: now the majority charge 3%, min £3. Taking cash out on credit cards has always been an expensive way of borrowing, particularly as interest is charged from day one, but with the 6.2% increase in the average rate customers who are relying on cash advances to balance their monthly budget it will make a bad situation even worse.

“There is some good news in that the number and length of introductory deals has increased. In April 2006 there were 58 cards offering 0% introductory purchase deals of up to 10 months. Today there are 85 cards with deals of up to 12 months. There is also an increase in the number of cards offering 0% balance transfer deals, from 82 in April 2006 to 99 today. Previously the cards offered between up to 12 months now they offer up to 15 months.

“The market for balance transfers in the last two years has been very competitive with many institutions increasing the length of their deal. However, many institutions are tightening lending criteria so only those with perfect credit histories will be able to take advantage of these longer deals, and even then the interest free limits will be much smaller than they would have been granted previously.

“Although rates and charges on credit cards have increased, there are still good deals to be found for those with a good credit history. Shop around and find a card that best suits your needs, whether it’s a balance transfer deal if you have an existing debt on a card, or a card with an incentive such as cashback if you pay your balance off in full.”

www.moneyfacts.co.uk - The Money Search Engine

Moneyfacts.co.uk is the UK's leading independent provider of personal finance information. For the last 20 years, Moneyfacts' information has been the key driver behind many personal finance decisions, from the Treasury to the high street.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Comments

kumar
23 Jul 08, 04:50
How to find out the name which has been defaulted

Hi

I want to know whether my name is defaulted in credit card or not.. is there any particular site to find out the defaulters list..pls help me this is high preority...


chandra M
16 Nov 08, 02:01
credit card defaulter

Dear sir,

i am defulter in credit card and personal loan last four mounth, i am doing business, i have lost money in business, now i am in great problem, you can show me the way.


Rosaline
05 Dec 08, 20:13
Credit Card Default Charges

For the past 6 months I have been continuously charged the credit card default charge of £12. This has happened even when I paid in money to bring my balance below my allowed credit limit. Apart from the minimum amount being deducted monthly by direct debit, I usually pay in extra monies to reduce the amount owed. Because of the £12 default charge that is being continuously added to my account, my account is continously in the red even when I don't spend any monies from the account. I know I am in the red because of the exta £12 default charge. I have called my providers several times to ask why this is so and over the past 6 months I have received 4 different explanations as to the reasons for the charge being carried forward. I need help to resolve this problem.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules