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30 November 2015
The Co-operative Bank has launched a new balance transfer credit card which does not penalise customers by withdrawing the promotional zero per cent offer when they make a late payment, miss a payment or go over their credit limit.
The new balance transfer credit card offers customers zero per cent APR on balance transfers for 24 months which will not be revoked if a small mistake occurs. This is different to other cards in the market as credit card terms and conditions typically include the right to remove promotional offers, and the rate reverts to the standard APR on outstanding balances.
However, customers intending to take out this card need to adhere to their terms and conditions. Standard late payment and overlimit fees continue to apply as well as a one per cent fee on balance transfers.
Matthew Carter, Products and Marketing Director at The Co-operative Bank, said: "We have developed a credit card that is simple, transparent and fair after consultation with our customers. They told us that they don’t want to be disproportionally penalised for small mistakes. While customers expect to be charged a small fee for not adhering to the terms and conditions, they don’t expect to lose all the benefits on a card, as this can mean paying a significant amount of interest, especially if the promotional offer was due to run over a two to three year period.
"A balance transfer credit card is an effective way to manage debt and cut the cost of borrowing. Yet, many cardholders never really benefit from these headline promotions as small mistakes prove costly, even though they have paid a fee for the benefit. Our new card ensures customers can utilise the zero per cent rate for the length of the offer, while the balance transfer fee of one per cent makes it easy to calculate the cost of any transfer. Of course, customers should still be aware of the terms and conditions, and take action to minimise the likelihood of missing, or making a late payment by setting up a direct debit for at least the minimum amount.
"Earlier this year we launched an improved overdraft, which was similarly designed to help customers by being clear, simple and transparent. Our new balance transfer card further highlights our commitment - as stated out in our new Ethical Policy – to creating products with customers at their heart."
Details of the new balance transfer credit card from The Co-operative Bank:
For further information contact The Co-operative Bank Press Office.
About The Co-operative Bank
The Co-operative Bank plc provides a full range of banking products and services to around five million retail and SME (Small and Medium Sized Enterprises) customers. The Bank is committed to values and ethics in line with the principles of the co-operative movement.