Halifax is to cut the zero per cent offer on its ‘One’ credit card in the latest example of a company clawing back an introductory offer.
Once one of the most competitive cards on the market, Halifax is now to cut its zero interest rate offer for new purchases from 12 to three months. The rate charged to purchases has also been raised from 12.9 per cent APR to 15.9 per cent APR.
The changes are further evidence that card companies are struggling to make money from new customers, who are taking advantage of the many zero per cent deals available.
A spokesman for HBOS told the Independent: “We’ve always said we’ll price according to market conditions, and obviously there’s been a lot of changes in the marketplace. We’re still one of the most competitive cards in the market.”
The news follows a report from PricewaterhouseCoopers that said it expected many card companies to reintroduce annual fees to shore up losses from competitive deals.
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