The bank has also added a 0% interest on purchases offer lasting three months. The typical APR for the card is 15.9%, the bank says.
At HSBC we continually look for ways in which we can help borrowers better manage their debt and we recognize that people are becoming more careful with their credit card borrowing, says the bank’s head of consumer cards, Spencer May.
This is evidenced by recent reports which show UK credit card borrowing falling in four out of the last six months, he added.
The move flies in the face of recent fears that UK card issuers would tighten up on the generosity of their offers as they seek to manage rising levels of personal loan defaults and the threat of regulatory action over the fees they charge for late card payments.
However recent media speculation linked HSBC to a move to charge its 15 million retail banking customers a monthly fee for their current account, which was widely seen as a shot across the bows of the Office of Fair Trading (OFT). In addition to card fee charges, the OFT is thought to be mulling action against the major high street banks to reduce overdraft charges and mortgage exit fees.
