Nick White, director of financial services at price comparison website uSwitch.com, made his warning following a report by PricewaterhouseCooper which claims that annual fees of £35 per year could be introduced for plastic, adding to credit card debt.
“PricewaterhouseCooper’s prediction that providers could apply an annual credit card fee to recover lost revenue does seem like the next logical move for providers,” warned Mr White.
However, he urged consumers to keep this in proportion and added that while fees are likely to be introduced to recoup losses following a slashing in unauthorised use charges, they may be lower than £35.
Consumers with credit card debt are likely to become increasingly concerned on how to manage it as interest rates rise.
A fee would only add to the amount that people have to pay to have a credit card and many consumers may wish to seek out debt help before fees are introduced.