American Express limits balance transfer facility

Credit card provider American Express (Amex) has announced that it is limiting the provision of the balance transfer facility on its products.

Balance transfers will now be available to a ’select profile’ of customers and Amex has said that it may occasionally offer the facility to certain borrowers from time to time.

It has also, however, reserved the right to refuse balance transfer requests, including those from overdue accounts, exceeded credit limits, overdrafts or loans, according to financial advice website moneysupermarket.

Commenting on the development, Robert Kenley, head of credit cards at moneysupermarket, described it as a “strategic decision” and “a significant move”.

“Although this is not the end of balance transfers per se for Amex, it does prove that for some providers recruiting customers by way of an attractive balance transfer rate is not always a viable business proposition,” Mr Kenley said.

He added that there are many competitive cards currently on the market with zero per cent balance transfer rates.

The chance of getting a deal such as this with Amex, however, is now “significantly reduced”, according to Mr Kenley.