Credit card news - October 2006

October 10, 2006

Amidst the industry’s reactions to the stringent policy decisions of the past, teamed up with revealing reports and trends ringing the bells, the evasive charm of the credit card industry of the UK continued to prevail. While new products brought in a whiff of fresh air, some of the existing also revamped their services.

The month of September saw the authorities gearing up on a number of fronts, bringing in its fold good news for some and reasons to despair for others. Here we fill you in on what the month of September brought for the fast-paced credit card industry of the UK.

The scene continued to be gloomy in the scenario of personal debt. Research revealed that almost over a third of all unsecured debt such as credit cards and overdrafts in Europe belongs to the British population. For record purposes, the British personal debt numbers have spiraled up to an unbelievable ₤1.2 trillion mark.

Holiday spending also continued to be a reason for despair with reports revealing that one Briton in six borrowed money to fund their holiday this summer. Reports revealed that a majority of people have been failing to budget their holiday costs or plan their repayment schedule. 

On the other hand, credit card holders on a holiday also had a reason to rejoice, especially if they use a Post Office credit card. This is in light of the announcement by the Post Office that it will not charge any commission for those using its card overseas. Moreover, the interest-free period for balance-transfers has been extended from six to eight months.

New and potential credit card subscribers have a reason to rejoice as the American Express announces its plans to launch the ‘prestige card’. Amex recently teamed with Lloyds TSB to offer a new credit card, which promises to offer a range of benefits including the likes of a concierge service and a monthly fee of ₤4.95.

One of the most prominent offers being pitched is a personal lifestyle assistant who will handle requests such as theater bookings or dinner reservations, available round the clock.

Continue to Part 2

Credit card news – October 2006 Part 1
Credit card news – October 2006 Part 2
Credit card news – October 2006 Part 3