July 17, 2006

Credit card provider Morgan Stanley has issued a statement to financial advice website Moneyfacts, saying that it will be reducing its late payment charge before the end of August.

The statement was prompted by a press release from the site which brought up the possibility of Morgan Stanley asking the Office of Fair Trading (OFT) for more time to consider reducing its charge.

It has now said that it will be imposing a charge of £12 on any cardholders who breach their credit agreement.

While the provider confirmed that it would comply with the OFT's proposals, Morgan Stanley pointed out that it was not in full accordance with the organisation's position.

"Morgan Stanley disagrees with the OFT's legal analysis and conclusions on default fees outlined in its Statement of Principles," the statement read.

The reduction in default charge will apply to the provider's entire portfolio of cards and will take effect by the end of August.