Press Release
RESPONSE TO OFT ANNOUNCEMENT ON CREDIT CARD DEFAULT CHARGES - 5 April 2006
The Foundation for Credit Counselling (CCCS), Britain's leading debt charity, gave a warm welcome to the OFT steps announced today on credit card default charges.
Outlining the Foundation's approach and concerns, CCCS chairman Malcolm Hurlston said:
“We have been worried for some time that the burden of sustaining the credit card system was falling too heavily on people in debt while most of us were happy to enjoy a free service at their expense.
“Stealth pricing and the ravages of competition have led credit card companies to offer ever better deals to good payers while raising the fees and penalties faced by the minority.
“We favour the free market but competition alone was not succeeding in putting this right.
“Two years ago credit card companies were estimated to be receiving 43 percent of their income from penalties and charges. OFT intervention will provide a correction which is greatly needed in the public interest.
“Of course, turkeys don’t vote for Christmas and the high proportion of consumers who enjoy a free service now won’t want to be charged, but we hope the end result may be a return to annual fees which spread the costs more fairly among users.”
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- RESPONSE TO OFT ANNOUNCEMENT ON CREDIT CARD DEFAULT CHARGES - 5 April 2006
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