Amex introducing a charge if you don’t use your credit card

American Express (AMEX) is introducing a £20 ‘dormancy fee’ on their Platinum credit card.

As the Amex wesbite says for the Platinum Cashback credit card

‘A dormancy fee of £20 per year will be payable by you if the aggregate amount of all transactions, other than cash advances & balance transfers, that have taken place during the preceding 12 months is £0.’

This new charge will hit new Platinum credit card holders immediatley and existing cardholders from October.

As Peter Harrison, credit cards expert at moneysupermarket.com, says ‘This new dormancy charge from American Express is no great surprise.’

He went on ‘We expect to see more providers introduce similar charges as they seek to recoup the losses they are making on the credit card lending.’

To avoid the charge, simply use the card at least once a year.

If you are not wanting to use a card though, to avoid it you’ll need to cut up the card and close the account, not just put it somewhere safe and not use it.

Other cards such as the Santander Zero credit card already have a dormancy charge so Amex are not the first to implement one.

There’s a strong certainty that they won’t be the last either.