Credit card companies make more than £400 million ($750 million) a year from customers who pay late or exceed their limits, according to a new report.
One in four people were penalised last year and typically paid £20 to £25 each time, Which? magazine said.
The report also estimates that loan companies make £1 billion a year from selling payment protection insurance policies with personal loans. The magazine accused the credit industry of using “sneaky tricks and dubious sales practices” to sell “useless insurance”, persuading people to take on more debt than they could afford.
Credit card companies have been criticised by MPs on the Treasury select committee which is looking into charges and marketing practices.
For this complete story, please visit UK Credit Card Fines Earn $750 million a Year.
