Money News
Lloyds TSB is to levy a £35 annual charge on 'low usage' credit card holders - including those customers not using their cards at all. In a move that could see its rivals soon follow suit the bank has written to 50,000 customers informing them of the new fee - effective 30 days from the date of the letter.
What isn't clear yet is what constitutes 'low usage' and which customers will fall into the net. What is clear however is that cardholders not using their cards can now expect a fee to be charged.
To soften the blow the bank has offered customers who start to use their cards more regularly a 0% interest rate deal on all new purchases until May 2007.
Of course, if you aren't bothered about the above offer the best course of action is to get the scissors out on your card and inform Lloyds you no longer wish to be one of its customers. Failure to do so will leave your card 'active' - hence you'll remain liable for the charge.
This latest move by Lloyds, along with the tendency of card providers nowadays to charge a fee on balance transfers, is seen by many as a means of clawing back money after the Office of Fair Trading (OFT) ordered providers to lower the charges they impose on people who miss their card repayments.
Expect further financial pain down the road.
23 February 2007 © Moneyextra.com
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