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Warning over balance transfer credit card fees
Warning over balance transfer credit card fees
This is a duplicate of the Blog Entry made on: 22nd September 2015 10:06
This is a duplicate of the Blog Entry made on: 22nd September 2015 10:06
Borrowers could be caught out by fees on balance transfer credit card deals after being enticed by 0% interest offers, a consumer group has warned.
These deals allow people to put old debts onto a new card. Which? estimates that consumers pay about £334m in fees to do so each year, but it said few understood the costs involved. In its survey, it said seven out of 10 people incorrectly thought the transfer was free. Which? argued that the City watchdog should rule on whether the fee should be shown as a monetary sum rather than a percentage, or even consider banning firms from advertising deals as 0% when there was a fee. It said that many people were blinded by the interest rates on this debt, so failed to realise that some deals were more expensive owing to the fees that were charged.....Read more here
These deals allow people to put old debts onto a new card. Which? estimates that consumers pay about £334m in fees to do so each year, but it said few understood the costs involved. In its survey, it said seven out of 10 people incorrectly thought the transfer was free. Which? argued that the City watchdog should rule on whether the fee should be shown as a monetary sum rather than a percentage, or even consider banning firms from advertising deals as 0% when there was a fee. It said that many people were blinded by the interest rates on this debt, so failed to realise that some deals were more expensive owing to the fees that were charged.....Read more here
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