Barclaycard: £12 fee but 29.9%. Happy?

alexjohnson

(deleted.)

Rafter

I agree that the consequences have not been fully thought through or backed up with legislation to protect the most vulnerable people.

The fees were too high and unlawful under company law. The fees enabled the banks to lend more money to riskier people, covering the losses through the fee income they earnt.

The fees also enabled the card companies to cover their cost of offering juicy 0% deals, cashback, interest fee days and no annual account charges to other groups of customers including many many members of this site.

A knee jerk reduction in fees like this is bound to lead to knee jerk reactions by the banks in the short term to recover their income - the stock market short term view makes that inevitable.

The question is what sort of market do the OFT want to develop now?

Should people be allowed to borrow as much on credit cards as before?

Should one group of customers get all the benefits and free credit while others have to pay more?

Personally I think the credit market is pretty sick. It encourages weak willed people into debt and allows strong willed people to make money from stoozing and taking advantage of marketing offers.

But this site itself is funded from the commission earned from those strong willed people!

Would you be prepared to pay for using this site and not have the juicy offers and cashback deals so that those on low incomes or who have to use credit from time to time don't have to pay so much for their borrowing?

R.

Astaroth

As was to be expected... those that lose out the most by fees will now be paying significantly more than they did under the fee scheme and those who were complaining about the occasional mistake get less fees... need money to make money.

To be honest it was 100% predictable.

moonrakerz

Why do we seem to get the same old "holier than thou" comments about bank/credit card charges.

I don't think anyone (including me) is arguing FOR the morals of people who won't pay on time. If they can't run their finances they need a kick up the a**e ! But, perversely, the banks WANT these people, the more the better, lambs to the slaughter (or should that be fleeced).

Its no good blaming the OFT, Martin Lewis, Uncle Tom Cobleigh and all, for the fact that people can claim back their charges.
Penalty charges are unlawful in Contract Law - FULL STOP ! Change the law if you don't like it !
The law hasn't actually changed regarding charges - the banks that have just cut their credit card fees will recoup that money one way or another.
Personally, I think people who pay ANY interest on a credit card are as stupid as those who bounce Direct Debits, but I don't keep carping on about on this site ! Whoops - now I am !

As I said in a previous post, if Bloggs Bank plc were to offer me 10% on my current account and were able LAWFULLY to charge me £100 (or £5,000!) for bouncing a direct debit - I'd be there like a shot !