Local MEP welcomes crackdown on credit card companies

North West Euro MP Sajjad Karim, Liberal Democrat Spokesperson on International Trade, has welcomed the European Commission's report that the EU credit card industry is too confined to national markets, generating huge discrepancies in customer charges from country to country.

"The Commission's preliminary report is to be welcome. Consumers and businesses have been getting a rough deal for far too long on credit cards," said Mr Karim MEP

"For example, North West holidaymakers travelling to Europe on holiday this year will withdraw over €11 billion from European cash machines, the charges on these transactions alone will cost them around £343 million.

"This announcement, coming on the back of a similar statement by the UK Office of Fair Trading last week, means that credit card customers, whether it be for late payments or using their cards abroad, are now far more likely to be spared extortionate payment costs.

"And consumers, who have been ripped-off in the past, may even be able to reclaim monies for payments, backdated to 2000, that were over the £12 limit, which both institutions claim is the maximum card-users should have to pay for administrative charges.

"Unless the credit card companies fall into line now, they are likely to face the consequences in the form of anti-trust legislation," Mr Karim added.