While we have all seen the news about the an going situation regarding bank charges, behind the scenes the Office of Fair Trading (OFT) have been heavily involved in trying to regulate the credit card industry.  A recent survey has shown that more than one in four of the UK population have been hit by credit card penalty charges over the last twelve months, with charges totalling some £230 million last year!

While the OFT have stepped in to try and avert a similar situation to the bank charges debacle, this income stream is still proving to be a useful revenue generator for the finance companies.  While the OFT have introduced a maximum penalty charge of £12 , many of the card providers have just re-arranged their fee structures with many increasing their standard interest rates, and others looking to introduce monthly fees where their earnings potential is lower.

While the bank charges investigation and the introducing of a price cap to the credit card industry were done with the best of intentions, it is looking as though the situation will back fire on the consumer.  Many financial institutions are already indicating that the days of “free” banking are already numbered - even though it is arguable that banking has never been “free” - with rumours of monthly fees and reduced services for those in various categories.

The landscape of the financial industry has changed somewhat over the last 12 months and it looks set to change a whole lot more over the next couple of years.  There is a definite sea change in the attitude of the financial companies, an attitude which seems set to target the customer for more and more charges!