Credit card offering raises ire of UK government
(29 October 2004 – UK) British supermarket giant Sainsbury’s banking operation has launched a credit card onto the UK market that offers zero percent interest for a 12 month period.
The new product has been launched at a time when a British government Treasury select committee is examining mounting debt levels in the UK.
The committee has already asked credit card issuers to share information on borrowers in order to identify people who might take on more debt than they can afford.
Barclays, HSBC, MBNA and Royal Bank of Scotland have all been interviewed by the committee.
Sainsbury’s Bank said the nought percent interest rate deal was only available on purchases rather than customers transferring debt from rival credit cards.
HBOS has a 45 percent stake in Sainsbury’s Bank.
The committee has already asked credit card issuers to share information on borrowers in order to identify people who might take on more debt than they can afford.
Barclays, HSBC, MBNA and Royal Bank of Scotland have all been interviewed by the committee.
Sainsbury’s Bank said the nought percent interest rate deal was only available on purchases rather than customers transferring debt from rival credit cards.
HBOS has a 45 percent stake in Sainsbury’s Bank.
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