Credit card lenders recoup losses by Finance News Bulletin

Published: 19/12/07

A novel report has indicated that credit card providers are introducing new charges to recoup the wounded made following the limit placed on default payments by the Office of Fair Trading last dayDefaqto claimed that in June 2006, the average fee for a late payment on a credit card bill stood at £2221, which has now fallen to £1181

However, the corporation stated that many providers have looked to mitigate this defeat of income by increasing interest rates and other charges, while some have selected to invent new feesDavid Black, Defaqto principal consultant of banking and writer of the report, said: "Credit card providers have lost a great deal of extremely profitable revenue because of the charges limit and will inevitably seek ways to replace their lost income"praise cards are likely to become more luxurious over the medium-term, he warned, suggesting that sub-prime lending crisis has placed extra pressure on providersMartyn Saville, spokesperson for Which

, recently said it is "necessary" that people choose a credit card than suits their person needsCredit

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