Credit card annual statements to show true cost of plastic
Every active credit card user will get a clearer indication of what their plastic really costs them, as they will now receive an annual statement detailing all fees charged over the year.
Some 31 million credit card holders will receive an annual report on top of standard monthly statements.
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It will arrive on every anniversary of their application.
Each statement will detail aggregate annual:
- Cash advances
- Balance transfer amounts
- Fees (such as for late payment)
- Overseas commission charges
The scheme has been developed by The UK Cards Association, which represents card firms, in partnership with the Government's Department for Business, Innovation and Skills (BIS).
Only those who actively use their cards will get an annual statement.
Melanie Johnson, chair of The UK Cards Association, says: "Annual credit card statements will help empower customers by giving a clear view of how they've each managed their plastic over the past year.
"By clearly setting out costs and charges, this industry initiative could help customers get a better deal either by being more savvy about how they use their current card, or by changing to another account that's a better fit."
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