RBS announces new credit card fees
Customers holding credit cards with Royal Bank of Scotland (LSE: RBS; NYSE: BRS PRM) will now be charged if they neglect to tell their bank within 60 days of changing their address. Those cardholders who let two statement cycles go by without notifying the bank of their change of address will be charged £12. The new charge is just one of several new fees introduced since the Office of Fair Trading cut the amount banks may charge for late credit card payments in 2006.
Earlier in the month, UK travelers were informed that they will be subject to a number of new charges when they use their credit cards overseas. Some estimates have those new fees costing travelers up to £355 million dollars this year. In addition, some banks are now charging cardholders if they do not use their cards enough.
RBS has also announced that it will begin to assess purchases of items such as gift vouchers and using credit cards to finance gambling at their highest interest rates. These purchases are now being called “cash equivalent products” and are being charged as cash advances, which incur a higher rate than purchases of items in stores and online.