Credit card customers ‘still being overcharged’

British consumers are still being hit by hundreds of millions of pounds worth of credit card charges as the government’s plans to help people with their debts fail to have the desired impact.

That is according to a new report from uSwitch, which has warned that UK consumers are paying a collective £864 million a year for services such as taking cash out on their credit cards, balance transfers or using their cards overseas.

This represents £28.61 worth of extra fees per credit card customer, with around seven in ten consumers unwittingly getting further into debt as they are unaware of how much they will be charged for taking money out on their credit cards.

It comes just days after Egg announced the launch of its Money World MasterCard, which has been hailed as an innovative product through which borrowers can keep on top of their debts and personal finances for a relatively small monthly fee.