Credit card spending increases
Following a relatively quiet new year, UK consumers are increasingly spending on their credit card, according to the latest figures.
The trend comes as Britons have finally managed to pay off the debts from Christmas and began to feel more confident about spending again. One factor cited for the improved popularity of credit card is the recent ruling from the Office of Fair Trading concerning the penalty fees lenders are legally allowed to levy.
Following an investigation into the level of penalty fees, the OFT ruled that credit card companies could charge just £12 per occasion a borrower exceeds the limit on their card.However, lenders have begun to hit back in order to recoup lost profits. While some credit card companies have increased their interest rates or the charges for transactions carried out abroad, the Royal Bank of Scotland is currently considering charging its customers £12 should they fail to inform the bank about a change of address.
“I’ve never come across this kind of charge before,” commented Richard Mason, a spokesman for the price comparison site Moneysupermarket.