Lloyds TSB charging customers for not using their credit card

22/02/2007

This charge is targeted at cardholders who do not make much use of their credit card, around 50,000 account holders.

Banks and Credit card firms regard account holders who do not make use of their credit cards.

Banks have to produce monthly statements and other paper format, however this does not make money for the Bank, this is why they are charging a £35 fee.

Banks were charging excess and unfair penalty charges, the Office of Fair Trading stated that unfair penalties should be reduced by 50% otherwise they would take legal action towards the banks.

Out of the ‘big five’ bank organisations, Lloyds TSB is the first to introduce an annual fee on customers. The finance team feel that as TSB has started this, all other banks will slowly start to follow.

'This - the introduction of annual fees - is a natural outcome to the work the OFT did last year on default charges,' she said.

'If you have lost one area of income, all credit card issuers will be looking at other ways to get income.

'They are not charitable organisations. The message is either use your card or cut it up.'