Late payment charges strike a third of customers
(10 February 2006)

The debate about credit card providers' penalty charges rumbles on after it emerged that almost a third of all cardholders have been struck by a late payment charge at some juncture.

A survey by Moneyfacts shows that 31 per cent of customers have been forced to cough up at least once for such a charge, with banks raking in around £500 million each year through these fees and interest from exceeded overdraft limits.

Moneyfacts spokeswoman Emma Butler outlined some of the issues at stake, saying: "Credit cards are offering some fantastic deals at the moment, but the savings on interest can be eradicated by consumers being late on a payment.

"A borrower with a balance of £2,000 paying an average rate of 14.9 per cent will only be paying around £23 a month in interest. The fees for late payment and over limit charges are between £20 and £25, meaning one mistake can double the charge on the balance."

The research also showed that 52 per cent of customers claim not to receive the advertised APR on a credit or loan deal – even though 66 per cent of those who apply are meant to qualify for it.

If it seems that a late payment – and therefore a hefty charge – might be quite literally on the cards for you, a payday loan of between £80 and £1,000 can put enough money in your account to help offset this worry and ensure that your bills are paid on time.

It'll be yours within 24 hours and can give you some much-needed peace of mind if bills of any kind are starting to kick in.



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