Lenders 'will start charging for credit cards'
Published On 25 May 2007
By the end of the year it could be normal to have to pay an annual fee to use a credit card, an industry expert has claimed.According to Defaqto's head of banking, David Black, many more credit card providers may soon follow the lead of Lloyds TSB and Barclaycard and introduce an annual fee on their credit cards.
This is especially likely for customers who do not use their credit card regularly, Mr Black revealed.
"Reports that Barclaycard is considering an annual fee is not a surprise and my expectation in the years ahead is that there will be a gradual move towards annual fees in the credit card market," Mr Black added.
However, Defaqto's expert said that the charges could cause the credit card market to contract significantly as more people switch to 'free' debit cards.
Recent figures from the British Bankers' Association showed that underlying credit card spending in the UK fell by £100 million in April.
