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Treasury Announces Credit Card Fees Must Be Discontinued

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Treasury Announces Credit Card Fees Must Be Discontinued
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Many service providers such as airlines and retailers have been charging excessive credit card fees to their customers. Often, these fees could exceed £12. The cost of the actual transaction was about 60 times less than that. The Treasury said these fees must be continued.

Mark Hoban from the Treasury said that these providers have been abusing this practice for some time. In fact, many of them have gone so far as to charge more for the credit card fee than the product itself.

One of Hoban’s colleagues said that customers have become very frustrated with the way they have been ripped off by these providers. After listening to their resentment and frustrations, the Treasury has decided things need to be changed.

According to new policies, a new law will need to be in place by year’s end to ensure these credit card fees are put to an end. He said that these institutions have been deceptive as to how they are implementing these fees. As a result, customers are misled as to how much they are going to pay. Due to the fact that some institutions charge more for a credit card fee than another, credit card holders may not realize that they are actually paying more for one service over another.

In fact, the cost of purchasing tickets at some airlines has grown substantially in the past seven years. In some cases, the fees have increased 15 times over or more. The Office of Fair Trading is on board with making sure these practices are put to a stop. They said that airline passengers alone are paying nearly £300,000 pounds every day. Therefore, when these new changes are put into place, they want businesses to be fair and react to them in a timely manner.

The OFT first learned of the extent of the damage these fees have to customers back in June. They have been working on finding a fairer policy ever since.

Hoban said that the UK will be the first country in Europe to implement such a law. He believes that other countries will follow the UK’s lead and ban the use of credit card fees as well.

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