Ryanair causes outrage once again with its prepaid Mastercard
Over recent years the no frills airline Ryanair has been rubbing people up the wrong way time after time after time. The airline is always on the receiving end of some accusation or another with regards to trying to squeeze as much cash as possible out of consumers and misleading them by making their flights look really cheap at first glance but then adding on a myriad of fees and charges that can result in the end cost soaring to way more than the consumer thought he or she was going to pay.
This week has seen Ryanair once again come under fire over its tactics and its determination to make as much money as possible from every passenger. Controversy has now arisen over a prepaid Mastercard that Ryanair is due to launch in October, which will be the only card that consumers can use in order to avoid the costly charges that are imposed by those booking flights with the airline.
With all other cards customers are forced to pay an extra £6 per passenger each way by way of an administration fee, which means that for a family of four the extra cost on top of the flight cost would be a massive £48 just in administration fees. However, those that book using the prepaid Mastercard will be able to escape having to pay the fees but will have to make sure that they apply for and are accepted for the card before they book.
Ryanair’s Stephen McNamara said:”Ryanair’s £6 admin fee will not apply to any bookings made with Ryanair Cash Passport. Also there are no transaction charges for using the card at UK merchants until 31 March 2012, so we recommend that UK passengers make the switch to Ryanair Cash Passport as soon as possible to take advantage of the no fee offer.”
Consumers continue to be hit by card surcharges
These days many consumers who are planning a trip abroad book their travel online with the use of a credit or debit card. However, whilst this provides convenience and ease for travellers it is has also resulted in many people being ripped off by airlines and travel firms who impose costly and unfair surcharges simply for the privilege of using their cards.
The consumer campaign group Which? took on the fight against these charges earlier this year, launching a super complaint and calling for an investigation to be carried out by the Office of Fair Trading. The OFT announced recently that it agreed that excessive surcharges needed to be banned and that a simple change to existing government regulations would make this possible.
However, officials from Which? have said that customers are still being charged a small fortune on the cost of their travel by airlines and some holiday firms due to these surcharges continuing to be applied. It has said that the government is not acting quickly enough and states that action needs to be taken sooner rather than later with regards to rip off fees and charges.
With so many people that pay by card for their travel the collective losses amongst consumers is staggering, with around £265,000 a day being spent on charges and fees to travel firms and airlines by those using their cards. This is something that Which? wants to put an end to so that consumers are not financially penalized for using their cards.
An official from Which? said: “With most airlines yet to drop these card surcharges and some introducing new fees, it’s time for the Government to put a stop to this.”
Credit card users struggling with fuel costs
The cost of living has really taken its toll on credit card users and other consumers across the UK over the past couple of years, with everything from the cost of food to the cost of fuel having soared in price. A recent survey has revealed that for many credit card users it has become necessary to cut back on the amount being spent on fuel, with many restricting the amount that they are spending.
More than a quarter of people in a recent survey said that they had been forced to cut back on their fuel spending as a result of petrol and diesel prices. Many said that they had been forced to use the car less in order to do this, whereas some are simply putting less petrol in and putting themselves at risk of breaking down or accidents due to the risk of running out of fuel whilst on the road. The AA said that last week it attended 15 percent more breakdowns caused by petrol running out compared to the same week last year.
Many people said that they were putting less petrol in but because they were unable to cut back on their driving they simply ended up going back to the petrol station more often. Others have been trying to reduce their spending by going to shops that are closer by or car sharing for work.
An official from the AA stated: “Consumers are cutting out one in 20 trips, shopping closer to home, combining trips and watching pump prices like hawks. Some are putting their and others’ lives at risk of grinding to a halt by running on fumes.” He added: “This AA research is a stunning indication of just how badly fuel prices are affecting so many drivers across the UK. If the fuel gauge is in the red by the end of the week, the likelihood of a six-mile or more round trip to an out-of-town store diminishes.”
Many holidaymakers turning to credit cards
Most people who go on holiday tend to have a fixed budget when it comes to their spending money, particularly in the current climate where most cannot afford to go over a particular budget. However, recent evidence has suggested that many people are overspending when they actually go on holiday, spending way more than their budgets and often having to turn to their credit cards.
Research has shown that around 60 percent of holidaymakers are experiencing financial problems when they come back off holiday as a result of spending too much whilst they are on holiday. The average amount by which each person overspends in £237 and around 34 percent of people said that they had blown their budgets altogether whilst on holiday.
Around 17 percent of people said that overspending was actually part of the whole holiday experience. More than one fifth had been forced to turn to their credit cards in order to continue spending whilst on holiday. Even those who decided to stay in this country have been overspending whilst on holiday, with around 67 percent having spent too much even whilst on a camping holiday within the UK. The research was carried out by City Confidential and officials said that the worst group when it came to overspending were those going on city breaks, with nearly 70 percent overspending whilst on a city break.
An official from Credit Confidential said: “The hangover from holiday overspend looks set to stay with us in the run-up to Christmas, with millions of us having to make changes to our budgeting plans in order to pay off these unexpected debts. Summer holidays are a great opportunity to loosen up and have some fun, but overspending can cause a holiday hangover that no-one wants to endure. It’s important to try to stick to your budget and, if you do overspend, to try to get back into the black as soon as possible.”
More Brits turn to cards for holiday spending
It has been revealed in a recent report that a rising number of British consumers are turning to their credit and debit cards to fund their spending whilst they are away even though many of them are still taking cash with them when they travel. Whilst many people feel a certain sense of security when they take cash along with them on their holidays as a precaution, many are now said to be using their plastic in order to pay for things whilst they are away.
Research was recently carried out by High Street banking giant, Halifax. The results of the research showed that around one third of travellers were now using their credit cards for spending and making purchases whilst they were away whilst around 40 percent were using their debit cards. Just five years ago the number of people using debit cards and credit cards came in at 20 percent, showing that there has been a sharp increase in the use of both types of card.
Brits are said to be spending around £1500 per years to escape from the trials and tribulations of everyday life and whilst they are away they are spending around £500. With many of them now using credit card to fund this spending whilst they are away, officials are now urging consumers to make sure that they are checking the cards that they take with them to minimise on the fees that they are charged on their cards for using them to make transactions.
Some credit cards come with a variety of different fees and charges when they are used abroad, such as foreign transaction and exchange fees on top of the interest and any withdrawal fees that they already charge.