Balance transfer fees ‘on the increase’

Recent research has shown that consumers are facing increased fees when switching their credit card debts.

According to figures compiled by MoneyExpert.com, the average balance transfer fee levied against British credit card users now stands at 2.67 per cent, which represents an increase of 0.5 per cent since September last year.

The price comparison firm suggests that rising balance transfer fees reflect a desire among credit card providers to find new revenue streams after regulators ordered them to cut other charges.

“Card firms have lost out since they were forced to cut so-called default charges so now customers are losing out as balance transfer fees increase,” said Sean Gardener, MoneyExpert.com’s chief executive.

“What goes down must go up seems to be the experience in the credit card industry” he added.

Data released by Credit Action shows that almost £1.4 billion is spent on plastic cards each day in the UK.