Household HSBC Watch

THE thorny issue of bank charges moved centre stage last week after three banks caved in to pressure to cut credit card penalties, and the consumer lobby group Which? launched a “fight back” campaign.

Lloyds TSB, HSBC and Barclaycard announced plans to cut late-payment fees from £20 to £12 on their credit cards after consumer watchdog the Office of Fair Trading ruled that £12 was as high as such fees should climb.

HSBC says it has no plans to lift rates, although Lloyds TSB acknowledged that new customers on its Platinum card would now pay 15.9 APR rather than 14.9 APR, and those who sign up for their Gold card will pay 17.9 APR rather than 15.9 APR. (see original full article)

Consumer advocates in the United States claim HSBC simply holds some payments until after the due date, therefore raising rates to the maximum while charging more late fees.