Europe Warns Over Credit Card Competition
Credit card companies could face action over 'outrageous' fees
14th April 2006
The credit card industry is facing fresh allegations of profiteering and excessive charging, this time from the European Union competition commissioner, Neelie Kroes.
Ms Kroes described fees charged by banks and card networks as 'outrageous', and the profits generated 'abnormal'.
Although the recent investigation into the UK's credit card charges has focussed on late payment charges made by card issuers, Ms Kroes' comments appear to be aimed more at the transaction fees imposed by card networks such as Mastercard and Visa, charges which ultimately filter through to the consumer in the form of higher retail prices.
There was also disparities between the charges made in different EU member states, and card companies were warned that cross-border competition may be imposed if signs of increased price convergence were not seen.
Read More: Money Guardian : Brussels calls credit card fees 'abnormal' and warns of fines
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