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Credit card Dormancy charges

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Amex have just introduced a dormancy charge of £20 on their credit cards:( if you dont use your card at least once in a 12 month period.
The letter I received from Amex list a number of changes to T&C and add that most are in response to new legislation. My question is is this dormancy charge due to legislation (I have not been notified by my other card companies) or is this another of the extra fees all companies seem to be charging in order to get more unjustified money from us.

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  • dzug1
    dzug1 Posts: 13,535 Forumite
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    The charge (if not the amount) seems totally justified. They are getting no revenue from merchants for the use of your card but still have the costs of maintaining your account.

    Other companies seem to be doing this as well - no idea on the legislative side though.
  • chattychappy
    chattychappy Posts: 7,302 Forumite
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    There is some regulatory pressure to close dormant accounts - or at least be ready to do some due diligence if they come back to life. Dormant accounts are often used in crime. Perhaps that is part of it - though the link is somewhat tenuous.
  • bengal-stripe
    bengal-stripe Posts: 3,349 Forumite
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    harlan wrote: »
    .......use your card at least once in a 12 month period.

    I don't think, that request is unreasonable.
  • gt94sss2
    gt94sss2 Posts: 5,681 Forumite
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    harlan wrote: »
    Amex have just introduced a dormancy charge of £20 on their credit cards:( if you dont use your card at least once in a 12 month period.
    The letter I received from Amex list a number of changes to T&C and add that most are in response to new legislation. My question is is this dormancy charge due to legislation (I have not been notified by my other card companies) or is this another of the extra fees all companies seem to be charging in order to get more unjustified money from us.

    Its a (avoidable) fee by Amex - nothing to do with new legislation.

    If you don't like it, change credit card company - most issuers don't have such a charge..

    Regards
    Sunil
  • Evilm
    Evilm Posts: 1,950 Forumite
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    Mozette wrote: »
    To be honest if you're not using it at least once a year, why bother keeping it? Still, you can surely just buy one thing a year on it without any trouble?

    If OP only used that card to pay for Home or Car Insurance once a year then that would suffice.
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