Warning issued over credit card fees

Recent research from the independent comparison service found that annual fees are now being levied by one in eight credit card suppliers operating in the UK on one or more of their products.

And Money Expert is convinced that the prevalence of these fees is likely to increase as financial service providers aim to improve their profits, but this could make a debt solution more difficult to find for many of the UK’s credit consumers.

“We thought we’d seen the end of annual fees on credit cards, but we think there could be a return sooner rather than later,” Sean Gardner, chief executive of Money Expert, remarked.

“Credit card companies will be under pressure to improve profits and reduce bad debts, and that could mean finding customers who are prepared to pay for credit,” he added

Meanwhile, figures from Credit Action demonstrate that consumer borrowing in the UK increases by close to £318 million each day.