Credit card balance transfer fees rise
Published On 12 September 2007
People who move their debts around their credit cards are being charged more to use these balance transfer facilities, new research shows.Consumer website moneyexpert.com has found that credit card firms have increased their typical balance transfer fee by 0.5 per cent to 2.67 per cent in the last year.
The site suggested that the increases had been put in place by credit card companies in a bid to recoup money lost when they were forced to cut back fees for missing payments and going over credit limits.
"What goes down must go up seems to be the experience in the credit card industry," Sean Gardner, chief executive of moneyexpert.com, warned.
"Card firms have lost out since they were forced to cut so-called default charges so now customers are losing out as balance transfer fees increase.
"Customers should of course still switch credit cards in search of better deals and particularly if they are paying standard rates of 16.9 per cent or so on debts. But they've got to remember there is a cost involved and factor that into any savings they make."
Figures from the British Bankers Association show that credit card borrowing in the country dropped by £100 million in July.
