18 August 2005
Credit card provider MBNA has changed rules that would have allowed customers to build up debt on their credit card and transfer it to a current account.
The move is the latest in a string of changes by credit card providers aimed at cracking down on so-called 'credit tarts'.
From September 1st, MBNA will treat the transfer of credit card balances as a money transfer rather than a balance transfer.
This is important because money transfers require borrowers to pay a two per cent charge and have interest grow on the debt immediately after the trasnfer.
An MBNA spokesman told This is Money: "We had this planned anyway, it simply makes sense because transferring the money to a bank account is essentially the same [thing]."
Egg is now the only lender not to convert such transfers from balance transfer to money transfer.
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