Customers should enjoy ‘positive payments’ order

Nationwide is calling for credit card customers to enjoy a positive order of payments.

Research carried out by the group indicates that over two-thirds of consumers do not know which order their payments are allocated to their account.

Almost a fifth believe that the longest outstanding debt is paid off first, while over one in ten believe that that the highest interest items are paid off first.

Nationwide claims that less than a third of Britons know how their repayments are allocated; that is, with the lowest interest items being paid off first.

Although the group has welcomed government action which mean that from October next year all credit card providers will have to draw attention to the order of payments they use, it worries that the practice is not well understood by consumers.

Nationwide is calling upon the industry to make changes now and to treat their credit card customers fairly by adopting a positive approach to their order of payments.

Tags: government action, interest, Financial services, attention, Electronic commerce, britons, positive order, order