Bank to impose charges for not using store cards
Cardholders informed of charges to terms and conditions
People who have taken out store cards to take advantage of introductory offers may have to pay additional charges if they do not use them on a regular basis.
Spanish bank Santander, which issues store cards for Debenhams, House of Fraser, Laura Ashley and a number of other British high street retailers, has written to customers to tell them their terms and conditions have changed.
The new policy enables the bank to charge a £10 fee to customers who do not use their cards for six months. It can also cancel cards that are not regularly used.
Many people take advantage of the introductory offers on store cards without ever intending to use them due to the high interest charges they levy, which can reach 30%.
The new terms are among a number of terms and conditions related to the new Consumer Credit Directive in a letter to card customers.
Santander says it is ‘aligning the store card business’ with the conditions of its Santander Zero credit card, which also imposes a fee on customers who do not use the card.