Amex introducing fees to dormant credit card holders

Commenting on American Express introducing fees to dormant credit card holders, Peter Harrison, credit cards expert at monysupermarket.com said; "This new dormancy charge from American Express is no great surprise. It costs card firms money to issue and maintain cards and they are required to set capital aside to cover your credit limit. We expect to see more providers introduce similar charges as they seek to recoup the losses they are making on the credit card lending. Fortunately, the dormancy charge is easy for consumers to avoid - either by using the card at least once a year, or by cutting up the card and closing their account.

"Amex has also recently reduced its top rate of cashback from 1.50 per cent to 1.25 per cent, although it applies to spending above £7,500 - the old top rate didn't kick in until you'd spent £10,000 on the card."