Confused.com Finds UK Consumers Waste GBP150Million a Year on Credit Card ChargesBy Confused.com, PRNE
Sunday, March 6, 2011
CARDIFF, March 7, 2011 - Confused.com research has shown that whilst Government changes enforcing
a positive order of repayments on credit cards are now saving consumers an
estimated GBP500(Source: Guardian.co.uk, The Observer, 14th March 2010) a
year, UK consumers are still collectively wasting GBP150 million per year on
unnecessary late credit card payment charges.
The comparison website found that 57.5% of credit card customers don't
have a direct debit set up to make the minimum repayment on their credit card
each month, making them liable for a 'late payment' charge from their
provider if they forget to make a payment. Costing an average of GBP12 per
time, these charges can soon stack up.
26% of credit card holders have been charged at least once in the last
year for missing a minimum payment; a further 8.5% have been charged three or
more times in the last 12 months, and 1.2% have been charged ten or more
times in the last 12 months - that's over GBP120 each in charges.
Chris Griffiths, head of credit cards (
www.confused.com/credit-cards) at Confused.com, said: "Setting up a
direct debit to make a minimum payment on a credit card is such a simple
thing to do, yet well over half of credit card holders haven't done it.
Collectively we are wasting millions of pounds each year on these charges. As
well as late payment charges, many credit card holders are likely to have
lost out on attractive low interest introductory deals or rewards as well, as
these deals are often withdrawn if minimum payments aren't met. Missing
minimum payments can also adversely affect customer's credit profiles, which
may be detrimental when they want to borrow in the future.
"We would encourage anyone without a direct debit set up to get one in
place. Not only will this save money on charges and help contribute to a
healthy credit profile, it will allow money that would have been spent on
charges to be used to repay more than the minimum amount, saving more money
as interest charges are reduced."
Notes to Editors
Research carried out by One Poll, based on responses of 2,000
BBA figures November 2010 show 33,552,000 active credit card accounts in
Confused.com survey found 19,292,400 of these accounts (57.5%) don't have
a direct debit in place. On average, each account has been charged a fee 0.65
times in the last 12 months, incurring an average fee of GBP12, creating
GBP150.48 million in charges.
Confused.com is one of the UK's biggest and most popular price comparison
services. Launched in 2002, it generates over one million quotes per month.
It has expanded its range of comparison products over the last couple of
years to include home insurance, travel insurance, pet insurance, van
insurance, motorbike insurance, breakdown cover and energy, as well as
financial services products including savings accounts (
www.confused.com/savings), loans, mortgages and annuities
Confused.com is not a supplier, insurance company or broker. It provides
a free, objective and unbiased comparison service. Confused.com's service is
based on the most up-to-date information provided by UK suppliers and
Confused.com is owned by the Admiral Group plc. Admiral listed on the
London Stock Exchange in September 2004. Confused.com is regulated by the
For further information please contact the confused.com press office: Zoe Stevens PR Manager press office Friary House Greyfriars Road Cardiff CF10 3AE +44-(0)2920-494393
For further information please contact the confused.com press office: Zoe Stevens, PR Manager, press office. Friary House, Greyfriars Road, Cardiff, CF10 3AE, +44-(0)2920-494393
Tags: Cardiff, Confused.com, March 7, United Kingdom