The 0% impact from credit card fees

So the Office of Fair Trading is getting tough on fees. Apart from exceptional circumstances - where there are 'special business reasons' - you should no longer have to pay more than £12 on late fees on credit cards, store cards, current accounts and even mortgages.

It's a striking move from the OFT. The downside is that banks always aim to protect their profits and will probably find another area to charge you and I.

In terms of credit cards, I fear this could pressure more providers into pulling their 0% deals.

I've been doing some bits with ITV News today - see the bulletins at 12.30 and 6.30. And for more views on today's decision, I'm also doing some more analysis for the 10.30 Nightly News.

Cheers,

Andrew Oxlade, Editor, This is Money

Useful links

Our credit card finder can help find the best 0% deals.

Comments

[Peter Elliott]

With the re-introduction of the Capital One 15month offer of balance transfers at 0%, it would appear that the credit card companies, despite their protestations, rely on those clever enough to be called 'rate tarts' for the growth of their businesses. If one has returned to a 0% offer, expect more to follow.

[mark]

Of course Banks protect their profits, they are a private business so you wouldn't expect them to give stuff away for free.

I think all cards will have a balance transfer fee, to offset part of the losses from these 0% offers.

However, the Banks are giving more and more compared to twenty years ago, and I cannot see that trend reversing. Good news for consumers is the Banking sector is highly competitive.

I expect european Banks look at the UK Banking sector with amusement, how can they provide all those facilities for free!