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Government bans excessive card fees
The Government will ban excessive debit and credit card surcharges from the end of 2012.
The move comes after complaints that airlines and booking agencies were ramping up prices by adding excessive charges for using a card, often at the last minute.
Under the new law, businesses will no longer be able to charge excessive fees and must limit credit card charges to the borne costs incurred by the retailer.
The move has been hailed by consumer rights magazine Which? as a huge victory for consumers.
It claims airline passengers alone pay more than £265,000 a day in debit and credit card fees.
Which? submitted a super-complaint to the Office of Fair Trading in March.
Speaking on Radio 4’s Today Programme, Financial Secretary to the Treasury Mark Hoban said: “It’s important that consumers know up front what charges they pay.
“What we have announced today will give consumers the transparency they need.
“I think consumers do feel ripped off and we want them to be able to shop around.”
Which? executive director, Richard Lloyd, added:
“The Government’s decision to ban ‘rip-off’ debit and credit card surcharges is a huge victory for consumers.
“This announcement goes further than the Office of Fair Trading’s proposals, finally putting an end to these unfair and excessive charges.
“Given that airline passengers alone pay more than £265,000 a dayin card surcharges, businesses shouldn’t drag their feet over this. While the law will come into force at the end of 2012, we want companies to be upfront and fair over card charges today.â€
by Bev Fearis
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
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