From now on, borrowers exceeding credit limits won’t incur £12 penalties, and customers who shift their credit debts to balance transfer cards won’t be charged for the move – Nationwide has branded both charges “unfair”.

Chris Rhodes, executive director of Nationwide, has said that the move will cost the lender around £2.6m annually, and that businesses would incur “relatively small costs” as a result.

A fortnight ago, Your Money reported on the possible end of ‘perks’ for credit card holders due to new EU rules on card transactions. Since then, it has been speculated that providers would seek to replace rewards such as cashback and free air miles with other incentives, including fee reductions. However, Nationwide has further pledged to retain all existing customer bonuses, including the 0.5 per cent cashback and 15 month interest-free period offer to ‘Select’ account holders.