no more 0%

Hi people
new to posting so sorry if in wrong place, the artical below is lifted from bbc 2s working lunch,has martins entusiastic rants on radio 2 to millions of people to screw the c card companies before they do you,
Killed the golden goose????

---The rise of the 'rate tart' is one of the trends identified by PricewaterhouseCoopers in their report into the credit card market published on Monday.

Such customers are constantly moving from firm to firm to seek the introductory offers.

The company says the 0% special offers are costing issuers £1bn a year.

It predicted lenders will start to limit such offers and seek to retain customers by reducing their standard interest rates.

Hard times

So what sort of state is the industry in and should we really be feeling sorry for them?


Although more of us have debit cards than have credit cards the number is on the rise.

In 2002 the figure was 62% of the population, this rose to 65% last year.

Moreover, for every seven new applications only one is a person who doesn't have a card already, so that means an awful lot of us have more than one.

Competition

And how competitive is the industry? Well, the answer is very competitive.

The five largest providers: Barclaycard, RBS, HSBC, HBOS, Lloyds TSB and MBNA have 70% of the industry. With various other companies making up the other 30%.


So many low interest rate offers in the past, how are the companies making their money?

Well, rather easily and by rather large amounts it would seem. Interest on balances accounts for approximately £5.4bn.

Transaction fees account for around another £1.1bn.

Meanwhile, other miscellaneous fees and charges are on the increase.

So no, we probably shouldn't feel sorry for them.
If i dont do it someone else will!

Comments

  • Already covered elsewhere on this site 1956

    See here
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  • 1956
    1956 Posts: 91 Forumite
    OOOooooops
    sorry,did say it might be in wrong palce
    i will try and keep up, will try hader next time.
    :):)
    If i dont do it someone else will!
  • Joe_Bloggs
    Joe_Bloggs Posts: 4,535 Forumite
    I welcome your research and contribution to this forum. I could only come up with an alternative description of the acronym PCW. Perhaps your thread could be merged with the old one ? That is if you feel the title of the alternative thread  reflects your response to the question posed. You are in charge of this thread you started. Do what you see fit.
    J_B.
    Edit.
    May be we can merge with your thread.
  • johnllew
    johnllew Posts: 1,928 Forumite
    The five largest providers: Barclaycard, RBS, HSBC, HBOS, Lloyds TSB and MBNA have 70% of the industry.
    Isn't that six?
  • 1956
    1956 Posts: 91 Forumite
    hi guys
    johniiew-could be six i was only "quoting"
    and thanks joe,er it was partly for disscussion and may be should have been in discusion area,never mind.
    cheers. ;)
    If i dont do it someone else will!
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