0 per cent credit cards could be axed

According to recent reports from the credit card market, the 0 per cent balance transfer credit card could now be scrapped, following some new Government regulation that aims to tighten up credit card lending rules.

Millions of UK consumers have taken advantage of the 0 per cent balance transfer to switch their credit card debt from one place to another, attracting very little in the way of fees or interest each time for a six month period. So-called ‘rate tarts’ have switched often to take advantage of the fee-free nature of the debt .

Partner at PriceWaterhouseCoopers, Richard Thompson, reportedly commented: This will make 0 per cent balance transfer offers a less effective means of customer acquisition and will prompt the industry to innovate to attract new customers.