Card users face "zero sum" cutbacks
The card providers' squeeze on 'rate tarts' tightened today with another company announcing sweeping restrictions to its zero per cent offer.
HSBC's Bank Credit Card is the latest to enter retreat, with the 'zero sum' deal reduced to six months from the competitive nine month offer launched in November last year.
The cut goes hand in hand with a rise in the standard APR from 13.9 to 14.9 per cent for new customers.
This move comes in the light of similar announcements from Halifax, Tesco Personal Finance and John Lewis, in a week when Barclaycard expressed concern that bad debt provision had risen 44 per cent across 2005 as a result of lower recovery rates from customers.
Lisa Taylor from Moneyfacts said: 'In an attempt to claw back losses, providers are resorting to amending or withdrawing the headline offers originally designed to entice new business.
'If current market trends continue these attractive offers that we used to take for granted may become few and far between.'
However, she added: 'If consumers feel in control of their financial situation and confident of their ability to manage their debt, there are still some competitive credit card deals to be found.'
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