Customers suffering card fee set by Morgan Stanley

19/04/2007

Customers have been charged a fee from Morgan Stanley, Black cashback credit card total to a £20 fee.

Customers who have tried applying for a Platinum credit card and have been rejected are offered this different type of credit card.

For the first £2,000, the credit card offers 1% of purchases within a year and for money spent thereafter 0.5%. The cashback advantage will be disabled for customers who are spending below £2,000 on their credit card.

All Black credit card customers will not have to pay a fee, Morgan Stanley said. Looking at repayment history and spending patterns of existing customers a spokeswomen said that the fee would be targeted at certain customers only.

Around June 1st the charge will then be introduced, this may leave customers who might be thinking of avoiding the situation and create another account with a different credit card provider trapped with no escape.

Analyst at moneyfacts.co.uk, Michelle Slade, said: 'While other factors, including levels of bad debts will have a wider impact, it cannot be disputed that the OFT's actions has spread the cost burden to a much wider customer base, with card providers continually seeking ways to recoup this lost revenue.'

She added: 'It is now even more important that you review your card regularly to ensure that you are getting the best possible deal.'