Credit card charges to be capped by OFT

A report in today's TIMES says that the Office of Fair Trading is to cap credit card penalty charges to £10 or £12. Typically these penalties are £25 to £35 and are levied whenever a payment is late. Sometimes a payment could be 1 day late, or the minimum payment may amount to just £5. Nevertheless the small print in credit card contracts allows the card companies to level such high charges.

Recently, as blog readers may know, I underpaid Halifax by 10p and was levied £78.70 interest.

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