Lloyds TSB Introduces Annual Charge

23rd February 2007

Lloyds TSB bank is set to charge an annual fee of £35 on credit card account holders who the bank has classified as "low usage", including those who do not use their card at all. The bank has sent a letter to some 50,000 of their credit card customers telling them that the charge will be levied on their accounts, 30 days from the date of the letter.

"This fee only applies to customers who do not use their cards, there is little point after all having a card if you are not going to use it," a Lloyds TSB spokeswoman said.

If you are one of the customers affected by this charge and wish to avoid paying it then you should formally cancel the credit card with the bank. You can do this by cutting up the credit card and then telling the bank that you want the account closed.

Experts believe that this move by Lloyds TB is part of the trend for credit card companies to introduce new fees and charges to replace the income lost when the Office of Fair Trading told companies to lower the penalty charges they were imposing on people who missed or were late with their credit card repayments.