Co-op Bank : Marketers Fixated with 'Rate Tarts'
Co-op Bank says millions are spent promoting intro deals to a minority of 'rate tarts'
4th April 2005
The Co-op Bank has claimed the credit card market is skewed by a fixation on balance transfer deals, with millions being spent promoting these loss-leaders to a tiny minority of so-called 'rate tarts'.
The bank says that the majority of ordinary users are more loyal to a particular card, yet the marketers' fixation with introductory deals is leading to higher prices for the average customer.
A report commissioned by the bank found that low introductory rates did not fool the customer, with 64% saying a permanently low standard rate was important, and 77% preferring no annual fee.
The findings were released as part of the launch of a new Co-op Clear Card that features a single low rate for both balance transfers and purchases, with - unusually - no charge for cash withdrawals.
Sheila Macdonald, The Co-operative Bank's Chief Operating Officer, said:
"The profile of the typical rate chaser is attractive to credit card companies but it appears that the whole market is completely skewed towards this small minority. It is obvious that... ...in the future credit card companies will have to offer transparent, competitively priced deals with one, low rate for all transactions. That is why we have launched our new Clear card with exactly what the majority want"
Read More: Press Release, Clear Card Review
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Products from Co-op Bank : Co-Op Travel Card, Co-op Advantage Platinum, Co-op Clear Card, Co-op Unsecured Loans, Co-operative Bank Car Loans |
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More on Balance Transfers: Balance Transfers: 0%, For Life, or Flat Rate? (Article, 28/09/2005), Beware the Balance Transfer Fee! (Article, 05/09/2005), Compare Balance Transfer Credit Cards (Article, 16/06/2004), Balance Transfer Credit Cards (Article, 17/03/2004), Balance Transfers Dwindle in Popularity (News, 07/09/2006), Return of the Annual Fee? (News, 14/11/2005), Egg Profits Boosted by Balance Transfers (News, 27/07/2005), Egg Introduces Balance Transfer Fee (News, 03/05/2005), Rise of the Flat Rate Card (News, 12/04/2005), See all 11 Balance Transfers stories >>> |
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More on Flat Rate Credit Cards : Rise of the Flat Rate Card (News, 12/04/2005), 1 in 3 Fail to Clear Balance Transfers (News, 05/01/2005) |
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