Credit card Annual fees return - your views?

sjc_2

Don't think it will happen myself, as someone will still provide a no fee CC, be worth it for them to pick up all the lost business from the other providers. Or they will charge a fee like they used to IIRC on cards where you don't spend £X on them a year.

MPH80

And to be brutally honest, stoozing is as much if not more of a problem to credit card companies than charge reclamation. This cost the card companies a lot of money, which they were hoping to get back in interest later or by having a bigger market share, but instead they have thousands of dormant accounts.

And they allow for that in their pricing of the offer of the 0%. They know there will be approx x% who pay it back and y% who don't.

You can't allow, and they don't, for the thousands and thousands of pounds being claimed back - not to mention the lost income from the LOWERING of the charges they were forced to do.

This is a completely natural response - and as described in the article is a waterbed effect. You lower a company's income in one place - it'll find a way to raise it somewhere else.

They allowed for stoozers. They couldn't allow for the reduction and claiming back of charges. That's why it's clearly a large contributory factor and certainly the excuse the banks were looking for.

M.

Astaroth

I am surprised that this has only just hit the press.... 4 of the big banks CEOs said in their 1/2 year results that they were predicting a return to/ increase in use of fees for all banking products that are currently free.

Personally it would mean I would ditch the 2 cards that I have and hardly ever use which would probably be the best anyway.

jonesMUFCforever

I would close all fee paying cards even cashback ones as long as there is one alternative card to choose from.

Call_Centre_Monkey

I said before the Fees on the cards were reduced that annual fees would likely make a come back if it did happen. Looks like I'm going to be proved right. Again looks like the good customers will be paying for the bad customers mistakes again (ie with all the interest rises straight after the fees were reduced).

Besides, at the end of the day we've been lucky to have free banking as long as we've had. Other countries just dont have this.

johnmoney05

I will close ALL which they charge. I remember my first credit card with Barclays, they were going to charge me fee after the first year I held the card. I closed it with one month left. That maybe about 6 years ago?!

I forgot to mention, they did send me an offer after receiving my letter. I didn't even bother to answer that offer. Because I already got another new card at that time.

Norbert_Colon

I'm guessing some cards will remain fee free in return for a higher interest rate. If I'm right, I'll go for one of those since I rarely pay off less than the full amount.

lisyloo

I would certainly find it hard to do business travel without a credit card.
I think people should bear in mind a couple of things.

1) This report is only speculation. Yes it from PWC who are a respected body, but it's still only specualation even if from a reputable source.

2) I think people should bear in ind that credit cards offer valuable services. The credit card compnay are jointly liable with the seller as it's a credit agreement. So they can help you out if there are problems e.g. retailer goes bust. There are also valuable services like extended warraties and insurance.

I think I would keep one, but would probably be only one.
I would share a Nationwide card with my OH for use abroad rather than having one each.

moonrakerz

Beancounter wrote:

I would simply close all my accounts and start using my debit card instead. End of story.

Be careful ! If someone clones your Credit Card it is the Bank's money they have spent - if they clone your Debit Card it is YOUR money they have spent.

I know that you should get it back ............ eventually !

trets77

all this reminds me of the rumour of the £10 charge a month on the First Direct account and that all other current accounts would follow suit once one had imposed the charge. again because the greedy evil banks were getting a taste of their own medcine back with people reclaiming overdraft charges back.

unless ALL credit cards did it at the same time the first one to do it would see a mass exodus of customers to the cards that don,t . and market forces being what they are one company would not hesitate to capitialise on the others revenge on the consumer tatics.

lets be honest here it stinks and shows what sort of companys we are in league with really." If we cannot have your cash unfairly we have it off you anthor way." dress it up anyway you want but that is what it amounts too.

i have no doubt some overpaid suit from a "BOYS CLUB" banking group will be on Breakfast television tommorrow trying to justify this , well here is the news from me.

just try it and see what happens . I DARE YOU !!!.I DOUBLE DARE YOU MOTHER F*****S!!!!!. put a fee on my card and see what happens !!! you will be gone CAUSE you don,t get me you greedy pigs !!! not now not ever:rotfl: :rotfl: :rotfl: :rotfl: :rotfl:

sound childish??? well thats what we are getting from them so ner ner ner nah. tell him/her that Declan Murphy