Morgan Stanley Levy Card Fee
Morgan Stanley customers who hold one its Black cashback cards may now face a £20 annual fee.
The Black card is offered to those customers who have been declined for a Morgan Stanley Platinum credit card.
As the card offers 1% for the first year of purchases and 0.5% on all other purchase thereafter, this fee will see those cardholders who spend less than £2,000 a year lose their cashback benefits.
However, a spokeswoman for the Morgan Stanley said not all Black cardholders would have to pay the fee. She added: "We have reviewed the spending patterns and repayment history of customers and as a result we have imposed the fee for a number of customers."
The new annual fee will come into effect on June 1, leaving a small window of opportunity for those wishing to move to another credit card in order to avoid paying the fee.
Some UK credit card issuers have raised annual fees recently in an effort to discourage unprofitable customers as credit card firms look to boost flagging profits. Lloyds TSB, for example, have introduced a £35 fee for low usage on their cards, as other firms look to follow suit.
Michelle Slade, personal finance analyst at online comparison site moneyfacts.co.uk, feels that the Office of Fair Trading's clampdown on late penalty fees is a major factor in rising annual fees.
She added: "While other factors, including levels of bad debts will have a wider impact, it cannot be disputed that the OFT's actions has spread the cost burden to a much wider customer base, with card providers continually seeking ways to recoup lost revenue.
" It is now even more important that you review your card regularly to ensure that you are getting the best possible deal."
Alisdair Milton
24th April 2007
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