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£1 Billion
Al_Mac
Posts: 5,519 Forumite
in Credit cards
Apparently us tarts cost the industry this much each year. As seen on CEEFAX.
Powert to the SBT
Cheers all MSE's
Powert to the SBT
Cheers all MSE's
0
Comments
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Do you have a link or a quote or is this a guess?0
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Yes - the report on Radio 4 indicated that 10% of cards are charging for BTs - and that the trend is that more will be doing so in the future.
See http://news.bbc.co.uk/1/hi/business/4435283.stm
for the full details.0 -
Before we get too upset, don't forget that this is not the first time that "research" has predicted the end of 0% offers. This research was commissioned by a credit card company who introduced a long-term flat rate to the market a few months ago and backed it up with a TV advertising campaign. He he who pays the piper calls the tune. IIRC this same credit card company commissioned research at the time of their product launch which had very similar findings. Oh ... and which credit card company commissioned it ? CapitalOne, of course, who has just recently offered the longest 0% intro offer in history of 18 months. Me thinks that this organisation is backing more than one horse !
Stooze on
ClarimanAuthor of the first Stoozing FAQ on the Internet and Creator of the SOA & Snowball calculators at Lemonfool.co.uk0 -
Just found the earlier press release from CapitalOne. It was actually in September 2004 when they first commissioned 'research' which showed that the consumer really wanted flat low rates rather than 0% deals. Strangely this research coincided with the launch of their flat rate product ;o)
http://www.capitalone.co.uk/web/aboutus/mediacentre/press58.jsp"New research from Capital One has revealed that although 8.2 million Britons (18%) have moved outstanding credit card balances to other cards to take advantage of introductory offers and low balance transfer rates, 46%of all credit cardholders would be happy to stick with one provider if they were offered a low long term interest rate. Capital One recently launched the UK?s lowest flat card offering cardholders a rate of 6.9% APR variable for both purchases and balance transfers. This provides UK customers with the low, long term rate they prefer."Author of the first Stoozing FAQ on the Internet and Creator of the SOA & Snowball calculators at Lemonfool.co.uk0 -
However the article doesn't mention how much profits the credit card companies are making."An eye for an eye leaves the whole world blind" - Mahatma Gandhi0
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As long as there is one or a few companies offering 0%... I think pretty much all are going to continue to do it... simply because they would be stupid not to! :cool:0
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I just had a google for the report author, Professor Merlin Stone, and found some more 'research'. Not only has he concluded that flat rate cards are the way to go (paid by Capital One), he also thinks supermarkets can fill a gap in personal banking (Sainsburys paid for that) and that investors waste up to £3.8 billion on fees and charges (this time paid for by Close Waelth Management who offer investment portfolio management).
It seems that its not just 'rate tarts', there are 'research tarts' too.
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