NatWest yesterday announced the release of its credit card that charges 0 per cent on balance transfers for 23 months and 0 per cent on spending for three months, despite Royal Bank of Scotland (RBS) pledging to not offer this type of product five years ago.

Previously, the bank had ceased its offering of 0 per cent deals, displaying its concern that customers were taking on unmanageable debts, lured in by low rates only to be hit with higher charges once the deals ran out.

However, in a bid to combat this and to allow consumers to manage their finances and ensure the product is right for them, the new offering from NatWest will dispose of the more “toxic” traits or balance transfer deals, such as late payments and balances transfer fees.

Furthermore, those who use the card will also be encouraged to go through the bank’s ‘financial health check’ and will receive reminders before the 23 month introductory period comes to an end.

Commenting on the product, FairMoney executive chairman Dr. Roger Gewolb said: “It is great that banks are doing more to address some of the more toxic elements of credit cards. They are right to be wary of luring customers in with promising deals only for them to be left with high charges after a few months. More banks should be aiming to provide credit cards and loans that are fairer for all consumers."

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