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This sounds like something that needs to be highly illegal. If I were a British citizen, it is my money not the bank's. They should be happy I bank with them and not a competitor. Stealing my money would not endear them to me or make me want to continue banking with them.
I got my first (and only) credit card from Wells Fargo in 2000 I believe. It wasn't until years later that I first used it when I went down to Austin, Texas, for New Year's. After that, it was years again before I started using my credit card on occasion. Sorry, but I simply do not worship at the altar of the plastic god. A friend of mine was 16K in the hole ... before she was 19. Credit cards can destroy lives and given that high schools simply aren't allowed to teach anything other than how to take standardized tests, few people learn useful real-life knowledge like how to manage money wisely before it's too late.
Last Updated: Monday, 19 February 2007, 15:57 GMT
MBNA charges for being in credit
The MBNA bank has warned customers that they face a £10 fine if they leave a positive balance on their credit card.
Some cardholders were sent a letter at the end of January telling them that they risk facing what the firm calls a "credit balance service fee".
The charge will be made on accounts which have been unused for 12 months, the US company said.
MBNA says the fee will only be levied if customers fail to move the balance following the recent letter.
Cardholders have been told to avoid the fee by either transferring the money, spending it, or donating it to the company's nominated charity.
31st March
Customers have been given until 31 March to follow these instructions or face the fine.
MBNA also claims that purchases made with credit balances may not be protected under the Consumer Credit Act.
Mark Bowerman of the Association of Payments and Clearing Services told Working Lunch there is nothing to stop the company taking the fee.
"The banking industry's general advice is not to run your card account in credit," he said.
"It is a credit product and should be used that way."
MBNA is now one of the three biggest credit card issuers in the UK and has grown rapidly in recent years, partly through acquiring smaller rivals.
MBNA charges for being in credit
The MBNA bank has warned customers that they face a £10 fine if they leave a positive balance on their credit card.
Some cardholders were sent a letter at the end of January telling them that they risk facing what the firm calls a "credit balance service fee".
The charge will be made on accounts which have been unused for 12 months, the US company said.
MBNA says the fee will only be levied if customers fail to move the balance following the recent letter.
Cardholders have been told to avoid the fee by either transferring the money, spending it, or donating it to the company's nominated charity.
31st March
Customers have been given until 31 March to follow these instructions or face the fine.
MBNA also claims that purchases made with credit balances may not be protected under the Consumer Credit Act.
Mark Bowerman of the Association of Payments and Clearing Services told Working Lunch there is nothing to stop the company taking the fee.
"The banking industry's general advice is not to run your card account in credit," he said.
"It is a credit product and should be used that way."
MBNA is now one of the three biggest credit card issuers in the UK and has grown rapidly in recent years, partly through acquiring smaller rivals.
Last Updated: Friday, 23 February 2007, 15:20 GMT
Lloyds introduces credit card fee
Lloyds TSB is to impose a £35 annual charge on credit card account holders who do not use their cards.
The annual charge will apply to "low-usage" customers; including people who do not use their cards at all.
The bank has written to 50,000 customers to tell them that the charge will be levied on their accounts 30 days from the date of the letter.
On Friday, Lloyds TSB reported full-year profits before tax of £4.25bn ($8.3bn), up 11% from 2005.
At the same time, Eric Daniels, chief executive of Lloyds TSB, joined a growing chorus of industry figures questioning whether traditional free current account banking for customers in credit can continue over the long term.
Mr Daniels said moves by banking regulators to reduce penalty charges could have an impact on the market for current accounts and pointed to other countries where banking charges are routine.
"If there were to be a reasonably sizeable change (by regulators) then you would probably see a change from some of the players in the UK market," Mr Daniels said.
However, Mr Daniels did not say that Lloyds planned to introduce current account charges.
Card charge
Lloyds TSB would not give a strict definition of what customer activity they define as "low usage."
This will certainly open the floodgates for other credit card providers
Nick White, uSwitch
But they did say that customers who do not use their cards at all can definitely expect a charge.
"This fee only applies to customers who do not use their cards, there is little point after all having a card if you are not going to use it," a Lloyds TSB spokeswoman told BBC News.
As a sweetener, Lloyds TSB has offered customers who start to use their cards more regularly a 0% interest rate deal on all new purchases until May 2007.
Customers who do not plan to continue to use their card and want to avoid the fee should cancel it formally with the bank.
Formal cancellation entails the customer cutting up the card and telling the provider they wish the account to be closed.
Fees imposed
Lloyds TSB's move is part of a growing trend of credit card providers imposing annual fees and charging for switching debt from another card.
Experts believe that credit card firms are trying to claw-back money they lost when the Office of Fair Trading (OFT) ordered providers to lower the charges they impose on people who miss their card repayments.
Last May, the OFT told credit card providers that penalty charges would have to fall from about £30 to £12.
Recently, card provider MBNA said they would start charging a £10 fee on accounts which had a positive balance.
Lloyds TSB's move could lead to other card providers charging an annual fee.
"This will certainly open the floodgates for other credit card providers that are still desperately trying to claw back the lost revenue following the OFT's reduction of penalty charges," Nick White, spokesman for price comparison website uSwitch said.
"The worrying thing is when will this end? Will the 59% of credit card customers that pay their bill off in full every month be penalised next as they are not as profitable as customers that make minimum payments every month?" Mr White added.
Lloyds introduces credit card fee
Lloyds TSB is to impose a £35 annual charge on credit card account holders who do not use their cards.
The annual charge will apply to "low-usage" customers; including people who do not use their cards at all.
The bank has written to 50,000 customers to tell them that the charge will be levied on their accounts 30 days from the date of the letter.
On Friday, Lloyds TSB reported full-year profits before tax of £4.25bn ($8.3bn), up 11% from 2005.
At the same time, Eric Daniels, chief executive of Lloyds TSB, joined a growing chorus of industry figures questioning whether traditional free current account banking for customers in credit can continue over the long term.
Mr Daniels said moves by banking regulators to reduce penalty charges could have an impact on the market for current accounts and pointed to other countries where banking charges are routine.
"If there were to be a reasonably sizeable change (by regulators) then you would probably see a change from some of the players in the UK market," Mr Daniels said.
However, Mr Daniels did not say that Lloyds planned to introduce current account charges.
Card charge
Lloyds TSB would not give a strict definition of what customer activity they define as "low usage."
This will certainly open the floodgates for other credit card providers
Nick White, uSwitch
But they did say that customers who do not use their cards at all can definitely expect a charge.
"This fee only applies to customers who do not use their cards, there is little point after all having a card if you are not going to use it," a Lloyds TSB spokeswoman told BBC News.
As a sweetener, Lloyds TSB has offered customers who start to use their cards more regularly a 0% interest rate deal on all new purchases until May 2007.
Customers who do not plan to continue to use their card and want to avoid the fee should cancel it formally with the bank.
Formal cancellation entails the customer cutting up the card and telling the provider they wish the account to be closed.
Fees imposed
Lloyds TSB's move is part of a growing trend of credit card providers imposing annual fees and charging for switching debt from another card.
Experts believe that credit card firms are trying to claw-back money they lost when the Office of Fair Trading (OFT) ordered providers to lower the charges they impose on people who miss their card repayments.
Last May, the OFT told credit card providers that penalty charges would have to fall from about £30 to £12.
Recently, card provider MBNA said they would start charging a £10 fee on accounts which had a positive balance.
Lloyds TSB's move could lead to other card providers charging an annual fee.
"This will certainly open the floodgates for other credit card providers that are still desperately trying to claw back the lost revenue following the OFT's reduction of penalty charges," Nick White, spokesman for price comparison website uSwitch said.
"The worrying thing is when will this end? Will the 59% of credit card customers that pay their bill off in full every month be penalised next as they are not as profitable as customers that make minimum payments every month?" Mr White added.
I got my first (and only) credit card from Wells Fargo in 2000 I believe. It wasn't until years later that I first used it when I went down to Austin, Texas, for New Year's. After that, it was years again before I started using my credit card on occasion. Sorry, but I simply do not worship at the altar of the plastic god. A friend of mine was 16K in the hole ... before she was 19. Credit cards can destroy lives and given that high schools simply aren't allowed to teach anything other than how to take standardized tests, few people learn useful real-life knowledge like how to manage money wisely before it's too late.
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