Credit card firms stop interest free offers
Credit card users face disappointment today as a leading credit card company has announced it is withdrawing its interest free offer on balance transfers.
Launched in September 2005, the Capital One Platinum credit card offered zero per cent interest on balance transfers until January 2007.
Just two months on, the company has decided to stop the interest free deal, in a move that is becoming increasingly common in the credit industry.
Only recently, PriceWaterhouseCoopers revealed that interest free lending was costing card companies around £600 million per annum.
Website Moneyfacts predicts that more firms will withdraw their special promotions, which are designed to lure people to sign up.
Andrew Britchford, personal finance analyst from Moneyfacts said: 'Capital One will certainly not be the last big card player to withdraw from the zero per cent war, and with conditions still tough in this market, providers will be looking at alternative ways of reducing their share of the £600m annual cost of providing this 'free money'.' | 
