MBNA became the latest credit card provider to hike its fees this week, unveiling plans to charge borrowers as much as £75 or 3 per cent on all balance transfers.
The move is the latest in a string of fee hikes by credit card providers, and makes MBNA the first provider to charge a balance transfer fee of 3 per cent.
Only a few providers, such as Amazon and the Post Office, still charge no fee for balances transferred to them from other cards. The majority charge 2 per cent, and a small but increasing number are leaving their fees uncapped, forcing consumers to pay charges running into hundreds of pounds.
Richard Brown, chief executive of Moneynet. co.uk, the personal finance website, warned that other companies could now follow MBNA's lead.
"MBNA's move means significant penalties for those wanting to transfer larger sums," he said. "In recent years, borrowers have taken advantage of zero-interest balance transfer facilities, but there has been a worrying trend in recent times for card firms to impose substantial charges on this popular service."Reuse content