Â£2 increase to charges by credit cards provider

By MoneyhighStreet Staff. Published on September 8, 2008 This post currently has no comments.

American Express has increased charges on its credit cards by £2, bringing it to the limit of Office of Fair Trading recommendations, according to reports.

Customers using products including the Platinum Moneyback and Nectar credit cards now face a charge of £12 if they miss a payment deadline or exceed their limit.

Commenting on the company''s second rate rise in a year, a spokesperson indicated that increased costs were behind the rate rise.

She told the Guardian: "These increases reflect a rise in our administration costs associated with handling accounts in default.

"Our fees are in line with recommendations made by the OFT [Office of Fair Trading] in April 2006."

A report in 2006 concluded that company charges for credit cards customers were unfair, suggesting it would consider legal action against any firm charging more than £12.

The rate increase by American Express follows an announcement from department store John Lewis that it will increase fees on its Partnership credit card by 0.5 per cent in November.