| HSBC card to help minimise post-festival debt |
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LONDON: Retail banker HSBC has taken the first step to ensure a surge in its credit card business during the festive season. Knowing that millions of consumers will borrow money to splurge on Christmas shopping, the bank has offered a credit card deal with an extended interest-free period.
The card offers zero percent on all purchases and balance transfers for nine months without any hidden costs. The card has some additional features that might interest consumers:
(i) a Christmas price pledge – where the bank has offered to refund the price difference on a range of products if a branded product is available £10 cheaper elsewhere; the refund would be made within 60 days of purchase; (ii) the bank will also treat cash withdrawals like purchases extending the zero percent period to 56 days; (iii) payments are allocated in the order of ‘most-expensive-debts-first’, a method designed to help minimise the consumer’s debt more quickly. In effect, card holders would never have to pay interest if they repay their balance in full each month.
The new card could help shoppers save as much as £300 on interest payments and make their financial burden lighter after the festive season. With this card HSBC hopes to correct the impression people have about banks that offer zero percent interest on credit cards but include hidden charges and excessive fees.
The bank’s head of cards division Roger Lovering, said the card was an effort “to help cardholders plan how they are going to repay their debt once the festivities are over”.
Lovering reassured that the card will not add to the nation’s debt burden. Through shared credit data of its five million customers the bank would deny credit to those who are unable to repay their debts. The catch-free offer for nine months would also help, he explained.
Posted
on : Fri, 11 Nov 2005 11:05 GMT | Credit Cards News
By : Mark Richardson
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