Apathy is costing consumers millions, according to a report this week on credit card borrowing.Cardholders are sticking with existing providers and paying higher rates rather than switching to a card with lower interest rates, the survey found.

It said Britons could collectively save £2.5 billion (€3.9 billion) in just six months if they took advantage of the most competitive credit card deals on the market, a report has claimed.

But despite some providers offering introductory interest rates of 0 per cent for the first six months, most consumers are too apathetic to make the most of the deals, according to accountancy group PricewaterhouseCoopers.

It added that while consumers had an average of £1,400 outstanding on their credit cards at the end of last year, research by card provider Morgan Stanley had found 5 per cent of people would consider changing provider to get a lower interest rate.

PwC estimates that if all consumers switched to one of the 0 per cent introductory deals they could collectively save £2.5 billion within six months. The group said the major banks had been surprisingly successful in holding customers despite increasing competition. It suggests consumer loyalty may have been underestimated.

PwC partner Mr Richard Thompson said: "The resistance of many consumers towards changing credit cards has already resulted in the exit of some new entrants from the market. The highly competitive environment means the profitability of the credit card industry is particularly vulnerable to economic downturns and increases in unemployment."

He added that in the medium to long term the market was unlikely to be able to support more than six card issues. There are around 30 credit card providers in the market and PwC expects the smaller players with less than a 10 per cent market share increasingly to sell out to the bigger ones.

The report also found that annual losses from fraud had more than tripled since 1998 to reach £228 million in 2001, largely due to a rise in counterfeit cards. - (PA)