2.5million credit card users are feeling the crunch

Some 2.5million credit card customers have had restrictions put on their accounts as a result of the credit crunch.

Banks have cut spending limits, imposed annual fees and even closed some accounts.

Many of those targeted are prudent customers who use their cards rarely and pay off the balance in full every month.

These card users are considered by some companies to be a drain on profits because they are not paying interest or penalty charges.

The clampdown appears to be the latest attempt by the credit card giants to protect their profit margins as consumers struggle with their finances.

A spokesman for the price comparison website uSwitch. com said yesterday: "In the current turbulence of the credit crunch, credit card providers are taking drastic action to manage bad debt."

A survey by the site calculated that 1.6million Britons have had their credit limit reduced in the past year and 1.3million have either been hit with an annual fee or had their account closed down altogether.

It is thought that 400,000 customers have been affected by more than one measure, and one in four was given no reason.

The uSwitch survey found that 51 per cent of the targeted customers were using their card regularly and making at least minimum repayments.

A further 20 per cent were using their card regularly and paying their bill in full.

Just 16 per cent had exceeded their credit limit in the last year or missed more than one monthly repayment.

Simeon Linstead, head of personal finance at uSwitch.com, said: "We're not against credit cards providers curbing consumers' spending if their debts are genuinely getting out of hand.

"However, resorting to account closures, reducing credit limits and implementing annual or monthly fees without providing over one in four people with a reason for doing so is not good for consumer confidence or financial planning.

"Credit card companies who are taking action to close down or make changes to customers' accounts must be completely open about how and why they have selected those customers."

Mr Linstead added: "If your credit card provider wants to make changes to your account that you don't like, you should challenge their decision.

"If you are still not happy with the outcome or don't feel you've been treated fairly, take your complaint to the Financial Ombudsman Service.

"While your complaint is being dealt with, you can still take your business elsewhere - there really is no need to pay an annual fee for your credit card.

"Finally, having your credit card account closed will not impact your credit rating as long as you don't miss any repayments."

Those banks which have taken cards away, or imposed a fee for low-risk customers, include Egg and Lloyds TSB.

Egg, an internet bank, removed cards from 161,000 customers who it considered to be a drain on its profits.

Bank chiefs suggested the decision was taken to protect customers who were at risk of borrowing too much.

Critics said it was actually taking cards away from prudent customers.

Last year, Lloyds TSB introduced an annual fee of £35 for around 50,000 conscientious customers who used their card very little or paid off their bill each month.

Morgan Stanley imposed a £20 charge on thousands of customers who hold its Black card.

And fees of £2 a month - £24 a year - were introduced for the Co-operative Platinum Visa and Northern Rock's Base Rate Visa cards.