Money News
From this Monday (28 April), consumers will be able to enjoy a return to the 'good old days' of credit cards when Abbey's new 'Zero' card will become available across its branches. The new credit card offering does not charge a balance transfer fee and is interest-free for purchases and balance transfers for a period of six months. There is no cash advance fee and - good news for those intending to travel abroad this year - the card does not charge a foreign exchange fee either.
According to Abbey, this is the first card in history to eliminate all these fees at once. Roger Lovering, managing director of Abbey Credit Cards, said: "We promised the market that we would continue to innovate and that is exactly what we've done."
Abbey says there is no limit for balance transfers but each application will be considered on a case by case basis. At the end of six months, an APR of 18.9 per cent will apply to all purchases while cash advances will incur a rate of 25.9 per cent, calculated from the day of withdrawal. Fees for late payments, exceeding the credit limit, returned cheques and returned direct debits will still apply, all at £12.
Michelle Slade of Moneyfacts, said: "The launch of this card is fantastic news for consumers. Not only will those looking for a short-term balance transfer deal benefit but also those who are about to embark on their summer holiday. In a world where rates and charges are increasing on credit cards its good to see a lender bucking the trend and removing some of these charges."
Usually, Abbey's foreign exchange fee is 2.75 per cent and its balance transfer and cash advance fees are 2.5 per cent or a minimum of £3.
25 April 2008 © Moneyextra.com
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