4 May 2005
Plans by credit card supplier Goldfish to alter its payment terms have caused serious controversy amongst market analysts.
Goldfish wants to change the terms for prompt payers which would penalise people who clear their balance in full at the end of each month.
One idea the credit card company has so far put forward is to reduce the interest free period for these fast-paying people.
Head of personal finance at uSwitch.com Nick White has described the plans as "completely unreasonable" and feels consumers would be in a very vulnerable position.
"I do appreciate that the provider is not making any money out of these particular consumers, but penalising them for keeping control of their finances, and avoiding interest charges, is extraordinary," he said.
"This move would fundamentally change the whole premise of a credit card, and raises many questions, including what would happen if a customer oscillates between clearing their card one month and retaining a balance the next?"
Mr White has urged customers to consider switching to another credit card supplier, possibly to one that offers a standard interest free period, whether the customer pays off their balance in full or not.
Use uSwitch's free and impartial calculator to compare all credit cards and find the card to suit your needs.
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