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Card switches
'cost £1bn a year'
Credit cards
Credit card switching costs the industry £1bn a year
People who switch credit cards for interest-free deals cost the industry
£1bn a year, a study has said.
The report's author, Professor Merlin Stone of Bristol Business School,
said some credit card providers could not afford to continue offering
such deals.
More card providers were applying charges for balance transfers to
deter switching, the report said.
In 2003, none of the zero-rate deal cards applied charges for balance
transfers compared with 11% today.
Customers who move from firm to firm seeking cheap introductory offers
have been dubbed "rate tarts".
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