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The price of loyalty penalties
Charging different prices for the same product may be fine for some, but, as John Mongelard asks, is it fair?
For existing customers it is common practice in financial services, as well as other sectors such as utilities, to roll on to a higher rate at their next renewal. A fixed rate mortgage customer on 1.9% would typically be rolled over to a standard variable rate at around 2.4% at the end of the fixed period, for example.