The City regulator is preparing to crack down on complex credit card offers, threatening challenger banks such as Virgin Money and tarnishing their customer-friendly image.
The Financial Conduct Authority is thought to be focusing on whether customers understand offers such as multiyear 0 per cent deals that are then dramatically altered.
It is also looking at whether the cross subsidy this creates between existing customers on high rates paying for new customers on low rates should be allowed to continue.
The FCA’s credit card market study, which was announced in November, has been gathering momentum and is due to be completed in the next few months. Analysts believe that its findings could be painful for all operations but particularly for challengers.
Industry experts have pointed