Charges indicate ‘changing credit card market’

Sandra Quinn told Channel 4’s News at Noon programme that the proposals are not designed to increase the amount of credit card debt individual consumers amass, but rather to encourage them to use one card instead of another from another provider.

“On average we have about two credit cards in our wallet and the battle for credit card companies is […] to be the card that you pick up first when you open your handbag or your wallet,” the finance expert explained.

Charges set to be brought in by Lloyds TSB could affect as many as £55,000 unused credit card holders, at a cost of £35 annually, according to a Channel 4 prediction.

Earlier this month, Apacs revealed that plastic card spending over the 2006 festive period reach unprecedented levels as millions of Brits accumulated further credit card debt.