Zero transfer deals criticised
Consumer groups have voiced their concern about the fees charged by credit card companies on zero per cent balance transfer facilities. Research showed that more than six out of ten credit card companies will load the entire balance on to their high standard rate once a consumer has missed a payment by as little as one day. It was found that most companies removed also any offers and benefits immediately from the card holder, the credit history for the client may also be affected.
The Office of Fair Trading had recently instigated a rule that prohibits the cost of the charges companies can impose on their clients. The costs should not exceed £12 but the cost of the added higher interest charge, most commonly around 15.9 per cent, charged to the forgetfull client on the entire balance outstanding, brings the total added cost to £278 on a loan transfer of £2000. | 
