Mainstream credit card lenders raise fees

Mainstream credit card lenders are using the introduction of the new Banking Code as an excuse to raise their fees, it has been claimed.

In an article for the Daily Mail, James Coney explained that banks are busy spelling out new terms and conditions in light of the impending introduction of the new code next month.

HSBC subsidiaries First Direct and M&S Money have both increased the charges imposed on credit card customers in light of the new rules.

Both credit card providers are set to increase balance transfer fee rates, while First Direct will increase the fee for withdrawing funds from cash machines.

The availability of credit is expected to decline over the coming months, according to a new Bank of England report published earlier this week.

This will continue the trend for declining credit availability for consumers, according to the report, which shows that credit declined over the three months to August too.