High street bank announces credit card rate change

Wednesday, November 16, 2005

A well-known UK bank has announced that the introductory rate on a popular credit card is to be changed.

Halifax/ Bank of Scotland (HBOS) announced that from the start of this week the One credit card, which had an attractive introductory rate of 12 months interest free on credit card purchases, will be offered with just three months interest free.

The change in the credit card interest-free period is joined by a rise in the One credit card interest rate, up three per cent to 15.9 per cent APR.

"This combination of a zero per cent cutback and interest rate increase is another sign that even some of the big players in the world of personal finance are having to take action to claw back some of the costs associated with the zero per cent credit card war and more recently the rising levels of personal bad debts," said Moneyfacts' Andrew Haggar.

"This price restructure certainly comes as no real surprise, especially with the latest report from PwC (PricewaterhouseCoopers) hinting that card companies may look to bring in annual card fees to provide a much needed revenue boost."

The credit card survey from PwC earlier this week revealed that credit card fees may be reintroduced by a bank or card issuer looking to recoup some of the millions lost to credit card "rate tarts".

Find credit card offers here:
http://www.europinions-finance.co.uk/credit-cards/credit-cards/
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