Dormancy Fees

lozwayte

I have received a letter from American Express Platinum to inform me that they are introducing a "Dormancy" Fee of £20 if the card remains unused for more than 12 months.
I have just applied for a card from Santander, and they have a Dormancy Fee already in the terms and conditions.


I think this trend needs careful monitoring. It looks like a backdoor way of reintroducing membeship fees. The following cards do not yet charge "Dormancy" Fees:

• Britannia Visa
• Tesco Platinum M/C
• Bank of Ireland M/C
• Ulster Bank Gold M/C
• Amex Nectar
• Barclaycard Platinum

soya

and AMEX cashback minimum is upped more than 120% from £12 to £25 rolling over the 12months period! :mad:

so what happen if my cashback earned at the end of 12months period is less than £25? Does it roll over to next period or go to charity??

flyingscotno1

lozwayte wrote: »

I have received a letter from American Express Platinum to inform me that they are introducing a "Dormancy" Fee of £20 if the card remains unused for more than 12 months.
I have just applied for a card from Santander, and they have a Dormancy Fee already in the terms and conditions.


I think this trend needs careful monitoring. It looks like a backdoor way of reintroducing membeship fees. The following cards do not yet charge "Dormancy" Fees:

• Britannia Visa
• Tesco Platinum M/C
• Bank of Ireland M/C
• Ulster Bank Gold M/C
• Amex Nectar
• Barclaycard Platinum

What is so bad with a dormancy fee. Just stick a small payment, you were going to pay cash for on it- job done!

horsechestnut

I also received the letter. I phoned and cancelled the card as I had problems with them crediting my Nectar points to my account and I am not a big spender!!
I am staying with Goldfish for now as there aren't any restrictions or charges.
Yes, I am also concerned that cards are introducing a fee.

bengal-stripe

lozwayte wrote: »

....they are introducing a "Dormancy" Fee of £20 if the card remains unused for more than 12 months.

Why would anyone apply for a Credit Card if s/he has no intention to use the card?

Surely, asking you to make one transaction over twelve months is not unreasonable.
After all, it costs money to open an account, to keep it open and supply a pot of credit
which you will never use. All that, without ever any transaction passing through the account.

If you do not want the account any longer, cancel it. But don’t expect the company to provide you
with an account and credit ad infinitum.

(Who knows, the accountholder might have died years ago.)

INT1

I put random things on the account throughout the year and settle in full.

Job done

honeybear_2

Does anyone know if dormancy fees have a minimum spend limit? Or is that going to be the next thing they'll bring in?!

cos_2

I can't find anything to indicate a minimum spend, but it does kind of make sense if they introduce a dormancy charge. At least we'll know when it happens as they'll have to write to us to explain the T and C changes.

/Edit I presume the posts above don't have a minimum spend mentioned?

honeybear_2

Not unless I'm missing something...

My understanding is that the card has to be used at least once in 12 months but if anyone can add any further info I'd appreciate it

loveandlight

posted by bengal-stripe
Why would anyone apply for a Credit Card if s/he has no intention to use the card?

It's called smart moneysaving as some of us have one of their very low life of balance interest rate cards.

I have also just received a letter charging me a £20 dormancy fee but I couldn't care less.

Over the past couple of years, Amex have slashed away at my credit limit so I have none at all, stopped me from withdrawing cash (even though I have never taken cash out), increased their interest rate if I ever use the card and also told me over the phone, that according to their profile and checks they do every six months, they are expecting me to collapse financially (they've been expecting me to collapse for the past couple of years). I, on the other hand owe them under £2k now and never use the card at all, as I have a life of balance rate of 2.9% and my balance is coming down in massive leaps and bounds every month so I'm happy:D

vet8

flyingscotno1 wrote: »

What is so bad with a dormancy fee. Just stick a small payment, you were going to pay cash for on it- job done!

The trouble is, as loveandlight has said Amex offered very good LOB transfer deals and I have got less than £2,000 left on one of those deals. I do not want to use the card (in fact I have already burnt it as I only got it for the BT). If I use it that transaction will incur interest at a higher rate than the BT.

It seems to me they are regretting offering these good deals which have come back to bite them on the bum.