By: Nadeem_Walayat


UK Credit card providers are implementing a whole host of charges and fees to penalise their 'good' customers for the losses suffered on their 'bad' customers that has resulted in bad debt writedown losses of £3.2 billion for the past 12 months.



Credit card companies are in the initial phase hitting users with dormant credit cards (not used for between 6 to 12 month) that number more than 35 million in the UK.

Dormant Card Charges

American Express - £20 Fee if card not used during past 12 months
Abbey - £10 Charge if not used during past 6 months
LLoyds TSB - £35 Fee if card not used during past 6 months
Santandar - £10 fee if card now used during past 12 months.
Egg - 50p monthly fee if no interest paid, which implies that it will also hit egg customers that clear their monthly balance. Also have now cancelled cash back on their card.
Other card providers are expected to follow suit over the coming months,

Urgent Action Required

Dormant credit card holders need to take urgent action to CLOSE the account by calling up the provider and requesting it be closed. However, many providers fail to act so it may prove prudent to follow up with a letter to cover yourself in case the account is not closed, also check your account a couple of months later to ensure that it has in fact been closed.

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By Nadeem Walayat
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