Store cards forced to admit they’re bad value
May 2, 2007 by admin
Filed under News, News-Credit-Cards
Millions of shoppers across the UK will soon be told by their store card provider that they could be getting a better deal elsewhere.
An inquiry by the Competition Commission into the Annual Percentage Rate (APR) charged by store cards carried out last year found that they were too high.
This has led to store cards with an APR above 25 per cent now being told that they must provide a warning to card holders informing them that they could be getting a better rate with another product.
These warnings will have to appear on the card statement and store card providers appear happy to comply.
“Of late, some providers have already moved their rates lower,” revealed a spokesman for the Finance and Leasing Association (FLA), which represents providers.
“Providers are getting on and implementing what the Competition Commission wants. No-one has any issues with incorporating this information on statements.”
During its inquiry, the Competition Commission calculated that the UK’s 11 million store card holders are overcharged by around £55 million every year.
