American Express to charge £20 “dormancy fee”
American Express has announced plans to start charging customers who no longer use their Amex card.
The £20 per year “dormancy fee” will be charged to all Platinum Cashback credit card holders.
According to Amex’s website, the fee is charged to customers “if the aggregate amount of all transactions [on their account], other than cash advances & balance transfers, that have taken place during the preceding 12 months is £0.”
A spokesperson for the company said the “vast majority” of customers will not be affected by the fee.
Credit card comparison site moneysupermarket.com said the charge comes as “no great surprise”.
“We expect to see more providers introduce similar charges as they seek to recoup the losses they are making on the credit card lending,” said Peter Harrison, moneysupermarket.com’s credit card expert.
Keeping dormant accounts open costs credit card companies money, Harrison explained.
Customers wanting to avoid the charge need only to use their Amex card once per year.
Amex also announced that it has also reduced the top rate of cashback on its Platinum card to 1.25%.
EDITORS NOTE: I have no idea why so many American Express customers think Finance Markets is connected to the credit card – we’re not.
So please stop trying to publish your account numbers and names on our website, as this is plainly a security risk to you!!