Consumers warned over credit card charges
Consumers in Ireland were warned today to check credit card charges they are paying against new rates on offer.
With card holders owing around €1.8bn, the Financial Regulator insisted any changes in interest rates, fees or qualifying salaries could give customers the chance to cut bills.
Bernard Sheridan, head of consumer information with the Regulator, said the survey would give consumers bargaining tools needed to negotiate better deals.
“The onus is on the customer to seek a rate review, go in and negotiate a lower rate and if your circumstances may have changed with salary going up it could allow you to change to a higher level,” he said.
In its fourth survey of credit card cost, the watchdog revealed Permanent TSB’s ICE card was again one of the best deals around. It came out on top with the lowest interest rate of 9.9% on purchases and a rate of 11.6% on cash withdrawals.
American Express Blue was the dearest card on the market with interest of 18.9% on purchases.
Other cards with low rates on purchases included the EBS Member at 10.9% and National Irish Bank's Gold card at 11.9%.
The dearest card for cash withdrawals was Allied Irish Bank’s be card while the cheaper options include the EBS Member at 12.6%, Barclays Gold at 13.9% and NIB’s Gold at 14.2%.
EBS Member card however charges €15.24 for late payment, while NIB, BoI and Permanent TSB have no charge.
A survey published last May showed Permanent TSB’s Ice Card was the best deal around with interest on new purchases at 9.9%. AIB’s Classic Card and the American Express Blue card were named as the dearest with an 18.9% rate.
The Regulator encouraged people to tackle ever increasing debt levels, experts suggested people pay off as much as they can afford each month.
Consumers were also advised to take out a loan from the credit union or bank to cover the debt and avoid using credit cards until the loan is paid off.
Switching to a new credit card with a low or zero interest rate for balance transfers will also help cut debts.
