Government to ban excessive credit card payment fees
Consumers have been given an early Christmas present with the news that unfair credit card fees are to be outlawed.
Government to ban excessive credit card payment fees”
Consumers are to be protected from excessive credit card payment charges under newly-announced plans.
At present, it is estimated that UK consumers alone spend around £300 million on surcharges placed on credit card payments, with watchdogs having long argued that most of these far exceed the amount it costs a firm to process a card payment.
With this in mind, the chancellor George Osborne has announced plans to introduce new rules geared towards clamping down on unfair charges, with firms that break these facing the prospect of massive fines.
Announcing the news, Financial Secretary to the Treasury Mark Hoban explained that the UK is "leading the way" on this issue in Europe.
"We want consumers to be able to shop around. They have a right to understand the charges they may incur upfront and not be hit through a hidden last-minute payment surcharge," he said.
It is anticipated that the rules will take effect towards the end of 2012, with consumers then able to use credit cards, as well as debit cards, without having to pay surcharges.
Posted by Jack Ramsey
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