0% Balance Transfer Deals to End?
Huge cost of balance transfer deals to credit card companies means they may end
2nd November 2004
A report by financial services firm Price Waterhouse Coopers has estimated that 0% balance transfer deals cost the UK credit card industry around £1bn a year, as savvy customers switch their balances from card to card and effectively avoid paying interest.
The concept of a balance transfer deal was introduced as a marketing ploy, but as more and more card issuers have jumped on the bandwagon, the scheme has backfired and card issuers are looking for a way to reduce their losses.
The report suggests that issuers may become far more selective about who they'll offer low transfer rates to, and try and tempt customers into staying loyal to one card by offering increasing benefits over time.
Read More: PWC Report - Precious Plastic
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