Renewal fee on credit cards

Many consumers have several credit cards. We enjoy the waiver of the annual fee on the credit card for the initial few years.

We may not be aware about the expiry of this waiver period. They will renew it automatically and charge an annual fee (which can be quite hefty).

What can we do?

I suggest that you should check the expiry date with the credit card company and put a reminder in your diary or PDA. Prior to the expiry date, you should decide if you wish to renew it. If not, you can tell the bank.

Alternatively, you can write a letter to tell the bank that you do not wish to continue the card on its expiry.

I hope that the authority should require the issuing bank to get specific approval from the customer for introducing an annual fee on the expiry of the initial period. We should encourage fair business practice.