Fee-fi-fo-fum - the giant credit card fee racket

Despite last year’s clampdown from the OFT, credit card fees are still costing cardholders dear.

Research from price comparison website moneysupermarket.com reveals 10.2 million Brits (23 per cent of adults) fell foul of credit card fees over the past 12 months, racking up a bill of at least £230 million.

Rob Kenley, head of credit cards at price comparison website moneysupermarket.com, said: “Penalty fees still affect a significant proportion of the population and providers are raking in some hefty cash – even after the OFT-imposed £12 cap."

Despite so many people being burned by penalty fees, just 12 per cent of credit cardholders would like to replace them with a set annual or monthly fee.

Rob Kenley continued: “The results suggest a big thumbs-down from consumers for annual or monthly fees. If providers were thinking about introducing them, they would have to offer cardholders much more than simply replacing penalty fees. Even longer 0 per cent introductory offers or higher cashback offers spring to mind as a starting point."

Those in the North East were best at avoiding penalty fees in the past year, with 13 per cent suffering this fate compared with the British average of 23 per cent. Only 10 per cent of credit card holders aged 55 or more would prefer annual or monthly fees compared with 18 per cent of 18 to 24-year-olds.