Nationwide has decided to remove its £12 charge that is normally paid by customers who go over their monthly spending limit on their credit card.
It is urging other banks to follow suit and remove their charges for exceeding the credit limit.
This move has come about as the result of a review that Nationwide undertook to look into how it cares for its customers.
There has been a long standing clause in the small print of many credit card agreements that means that the customer pays interest on cards which they have previously arranged a balance transfer on.
It is estimated that this small detail costs credit card users in excess of £100m per year.
Nationwide has now removed this clause, meaning that so long as a customer pays off all their debt in full by the end of the month, they will not pay interest.
Executive Director for Nationwide, Chris Rhodes, stated:
ëWeíve removed the fee in recognition that people do ó unintentionally ó exceed their limit from time to time.’
ëAnd weíve seen that credit card borrowers benefit from balance transfer offers but many also want to use the card for everyday spending. Historically, experts warn against this as they may end up being charged if they donít pay the total balance off. We donít think thatís fair, so weíve changed it.í
Nationwide have a good track record when it comes to looking after their customers. In 2011 they fought for new regulations that allow the largest debts on a credit card will be paid off first.
It is somewhat unsurprising to learn that Nationwide have some of the very best customer satisfaction ratings out of any of the banks in UK.
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