Annual charges on credit cards could be making a comeback, according to new reports.

Annual charges on credit cards could be making a comeback, according to new reports.

Credit card issuers are losing out as a result of the rise in the use of interest-free balance transfer deals as well as zero per cent on initial purchases, according to accountants PricewaterhouseCoopers who expect that this could lead to annual fees being reintroduced.

The average revenue for each card is estimated to have halved during the past five years, the study found. The researchers added that "the impact of regulation is also putting increasing pressure on returns".

Brits are currently collectively owing £1.1 trillion, with £940 billion of this held in secured loans such as mortgages.

Overdrafts, credit cards and unsecured personal loans make up the country's unsecured lending, which has seen a 50 per cent increase since 2000 to £191 billion.

"There's an enormous amount of pressure on margins and more pressure from regulators and competitive threats and therefore one can't expect lenders to sit back and do nothing," said Richard Thompson, a partner at the accountants.

He concluded that there was no reason why annual fees should not be reintroduced.