American Express credit card charge 'no great surprise'

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American Express credit card charge 'no great surprise'

The charge introduced by American Express on dormant credit card holders is not a surprise, according to moneysupermarket.com.

But Peter Harrison, credit cards expert at the price comparison website, commented that it was an easy charge for customers to avoid, as they only have to spend on the card once a year or close the account.

He claimed that it costs credit card firms money to keep an account open as well as having to set money aside to cover the credit limit on the card, so it is not a shock to see a charge introduced.

"We expect to see more providers introduce similar charges as they seek to recoup the losses they are making on the credit card lending."

Mr Harrison went on to say that American Express had reduced its top rate of cashback to 1.25 per cent when you spend £7,500 or more.

The comparison site reported that arrangement fees for fixed and tracker mortgages had fallen by 25 per cent over the last year.

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