You are here: Home - Credit Cards & Loans -

OFT publishes credit card report

0
Written by:
11/02/2008

By Adam Saville

The Office of Fair Trading has published a report which makes a series of comparisons to help consumers see through the smoke and mirror tactics used by credit card providers.

The report follows a super-complaint from Which? that highlighted that consumers choose credit cards without understanding all the issues that affect the cost of the card. OFT research shows that 70% of credit card holders did not shop around before selecting their current card, and that this meant they were losing out.

John Fingleton, OFT chief executive, said: “No-one wants to throw money away, but consumers who don’t shop around for credit cards are doing that. It is essential that consumers are given the right tools to make comparisons between credit cards more easily, and we can achieve that through some of the recommendations announced today which have received widespread support.”

The report is based on research into issues surrounding the comparative cost of using different credit cards for purchases, cash advances, introductory offers and payment allocation. It followed the work with the credit card industry, consumer groups, other regulators, government bodies and other key stakeholders.

The report’s recommendation of the introduction of an independent credit card price comparison website run by the Financial Services Authority (FSA) has been supported by Nationwide Building Society who sees it as a way of protecting the consumer from the tactics used by many financial services.   

James Wood, director for credit cards and banking at Nationwide, said: “For too long many credit card providers have got away with applying an adverse order of payments to their customers and we hope this new comparison site will address this sharp practice.”

The report also calls for an improvement in the way information is presented to consumers, the standardisation of terminology used by credit card issuers and improvements to consumer education about the benefits of shopping around for a credit card.

The introduction of these improvements is aimed to give the consumer an insight into the workings of the credit card industry, allowing them to make better judgements when choosing a credit card.

Tagged:

Tag Box

Debt

Pension

Spending

Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
Rate tarts “here to stay”

More than 5.9m people switched their credit card provider in the past six months, according to comparison site MoneyExpert.

Close