Financial experts have warned that due to a Government clampdown on the credit card industry, customers may be charged an annual fee as the companies try to recoup lost revenues.

The warning was issued after a major lending firm announced a new credit card with a yearly fee of £12.00.

The move comes after the publication of the Government’s White Paper last week, which had proposals to ban lenders from raising borrower’s credit limits without their consent, sending out unsolicited credit card cheques or rising rates on debts.

Andrew Hagger, from a personal finance website, stated that foreign usage fees and balance transfer costs, on top of the hike will "just be rubbing salt in the wound."

Hagger said: "One pound per month may not sound much in isolation, but to the credit card industry it represents a massive opportunity to boost profitability.

"Ever since credit card penalty fees were capped at £12 back in 2006 we have seen a hike in cash withdrawal fees, foreign usage fees and balance transfer fees – monthly fees on top of this will just be rubbing salt into the wound."

David Black, a financial consultant, commented: "The vast majority of people are not used to paying an obligatory fee for having a credit card and there will undoubtedly be significant resistance to doing so.

"It is also apparent that many people have several credit cards and there is no pleasure for the card issuer in being the provider of a dormant credit card."