- Monday, 13 July 2009Consumers are facing a number of credit card charges that went unnoticed in the recent government white paper, according to uSwitch.com.
The fees, which amount to hundreds of millions of pounds per year, could contribute to an increase in the number of people struggling financially and entering into debt solutions such as
individual voluntary agreements.
Balance transfers, cash withdrawal fees and overseas transaction fees were highlighted by uSwitch.com as under-the-radar dangers for consumers.
Cash withdrawal fees have risen by 41 per cent since 2005 from 21 per cent to 29 per cent and cost consumers £161 million per year in interest, with overseas transactions costing a further £281 million.
Balance transfer fees have also risen, with consumers now paying £422 million per year to change credit cards.
Louise Bond, personal finance expert at uSwitch.com, said that though the government's white paper was a necessary start, these unmentioned factors needed addressing.
She said: "Whilst the government's white paper is a great start, it is disappointing that these issues have been overlooked.
"This is quite a big oversight and it will only serve to leave the credit card industry with a ‘rob Peter to pay Paul' opportunity if they do actually lose money on the other issues highlighted."
Sky News labelled the white paper a "strengthening of consumer rights".
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