Abbey's new Zero credit card charges no fees for balance transfers, foreign exchange or cash advances, and offers zero per cent interest on purchases for six months.
The Abbey fee for foreign exchange is usually 2.75 per cent, and its balance transfer and cash advance fees are ordinarily 2.5 per cent, or a minimum of three pounds. The Zero Abbey credit card
is the only one on the market not to implement any fees for balance transfers, foreign exchange, introductory nought per cent on purchases, or cash advances all on the same card.
After the initial six per cent interest-free period on purchases, the card reverts to 18.9 per cent on all purchases, and there is still a fee of £12 for making late payments, having returned cheques, and exceeding the credit limit.
"We promised the market that we would continue to innovate and that is exactly what we've done." Roger Lovering, managing director of Abbey Credit Cards, said. "The Abbey Zero card is the first ever card to eliminate all these fees at once.
"With no balance transfer fee and six months interest free, it's the perfect card to transfer a debt you want to pay off quickly and has clear advantages for the summer too. No foreign exchange fee makes holiday spending less expensive and Zero also has no cash advance fee for those rare times you might need cash in an emergency."
Existing customers will not benefit to quite the same extent as new customers, but they will have foreign exchange fees lifted for the holiday period, for the months of June, July and August.
Abbey's new card has come at a time when the credit squeeze is causing other credit card companies
to tighten their criteria, lowering credit limits and generally making it more access to credit more restrictive for consumers.
David Kuo, Head of Personal Finance at Fool.co.uk, commented on the new card: "Abbey has thrown down the gauntlet with its new Zero card." he said. "Other credit-card providers will now need to lick the tops of their pencils to come up with something to match. With its fee-free 0 per cent balance-transfer deal for six months Zero will give consumers half a year's welcome breathing space from the credit crunch."
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