According to new Which? research, only one in 20 consumers understands the true cost of 0% balance transfer credit card deals with 68% wrongly thinking that the transfer was completely free.
Which? also asked people to compare five credit card deals and to pick the cheapest for someone who wanted to make a balance transfer but who would not use the card for spending. Only a third chose the correct card, while 35% wrongly picked the one with the lowest APR.
Which? has submitted their evidence to the FCA and requested that the regulator look at balance transfer fees as part of its investigation into the credit card market to stop people being misled, and help them pick the best card for their needs. Suggestions from Which? include looking at whether the fee should be shown as a monetary sum rather than a percentage, or even banning firms from advertising deals as 0% when there is a fee.