As many credit card providers have tightened their strings in order to recover the losses that they have made during the current global financial crisis, some 2.5 million credit card holders have suffered the catastrophic effects of this credit crunch phenomenon, as reflected by uSwitch.
The study highlights how credit card suppliers are increasingly trying to make up for their losses by reducing card limits, introducing annual fees or closing accounts. Thus, 1.6 million customers have had their credit limits reduced and 1.3 million were told they would be charged annual fees or have had their accounts closed altogether.
However, while 25 per cent were told this was because of their poor credit rating and another 16 per cent because they were not using their account regularly, 27 per cent were not given any reason at all for the measures taken against them.
More than half (51 per cent) of those affected said they were using their cards regularly and paying off at least the minimum amount, and a further 20 per cent stated that they paid their credit card bills in full every month.
Only 16 per cent of respondents said they had missed a payment or exceeded their credit limit, which would provide credit card companies with enough reason to take action against these customers.
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