New annual credit card statements
The new annual statement, which has been developed by The UK Cards Association in partnership with the Department for Business, Innovation and Skills, will help customers see at a glance how they have used their credit card over the previous 12 months, as well as any fees and costs incurred.
Some credit card companies have already started sending out the new statements – card customers will most likely receive their first annual statement on the anniversary of when the account was opened.
Melanie Johnson, chair of The UK Cards Association, said: “Annual credit card statements will help empower customers by giving a clear view of how they’ve each managed their plastic over the past year. By clearly setting out costs and charges this industry initiative could help customers get a better deal either by being more savvy about how they use their current card, or by changing to another account that’s a better fit.”
To help customers compare cards, all the new annual statements contain the same information. They all specify the time period covered and include total spending, the amount repaid and any interest fees and charges incurred. The statement also shows exactly how the card has been used during the year – broken down by point-of-sale spending, cash advances, balance transfers, and the applicable interest fees and charges for each of these types of transaction. Information will also be provided on charges for foreign transactions.