press release

Press Release - 28/07/05

PLASTIC PROBE BY OFT WELCOMED – BUT MONEYNET WARNS CREDIT CARD COMPANIES MAY LOOK TO RAMP UP OTHER CHARGES

Credit card holders advised to study the small print and be prepared for card companies to go on offensive in wake of OFT investigation into high charges, says Moneynet.

CREDIT card companies may be looking to increase profits via alternative ‘stealth’ charges following this week’s decision by the Office of Fair Trading (OFT) to consult with eight major credit cards on what the watchdog deems to be excessive credit card charges.

Richard Brown, chief executive of Moneynet.co.uk – the online financial data comparison site, said he welcomed the OFT’s decision:

“But we are concerned that credit card providers may simply attempt to recoup their lost income via higher charges for all.

“Moneynet recommends credit card customers consider their options before taking out a card - and take into account all charges as well as the headline interest rate”, said Brown.

A charge of around £20 to £25 is currently payable if a cardholder fails to pay a credit card bill on the due date, exceeds the credit limit, or pays on time but by a direct debit or cheque that is not honoured.

In a statement earlier this week, the OFT said it believed it is ‘unfair for the purposes of contract terms regulation to require a consumer who defaults in one of these ways to pay a disproportionately high charge.’

PRESS ENQUIRIES

Richard Brown, Chief Executive, 0208 313 9030

David Andrews/Cathy Tully, David Andrews Media Ltd 07941 255855 / 01273 774109 / 07747196854

Consumer enquiries: info@moneynet.co.uk / www.moneynet.co.uk

Moneynet.co.uk is the UK's longest established online personal finance research and data analyst company. The company offers consumers a choice of thousands of low cost financial services products. From mortgages, personal loans to motor, home and medical insurance, credit cards, savings accounts and best buy fixed rate products, Moneynet is one of the most comprehensive online services of its kind in the UK. Founded by chief executive Richard Brown, the Moneynet brand is destined to become one of the UK's major players in consumer finance products.

A DAVID ANDREWS MEDIA LTD - RELEASE FEBRUARY 2005