Conservative credit card attack “missed the point”
Shadow business secretary Alan Duncan has “missed the point” in criticising credit card providers over 0% deals, according to Moneysupermarket.
The financial comparison site released a statement today criticising a recent attack of 0% credit card deals by Duncan in an interview with the Financial Times. Steve Willey, head of credit cards at Moneysupermarket, said: “Shadow business secretary Alan Duncan has missed the point and shown some naivety when he says zero per cent offers are not acceptable practice.”
In an interview the Financial Times, details of which were published on Friday 7 March, Duncan highlighted credit card companies offering 0% interest for short periods on purchases and balance transfers. He said consumers were being “seduced into debt which if they had to pay interest they couldn’t possibly afford,” according to the Financial Times.
Moneysupermarket’s Willey argued: “A 0% offer on balance transfers or purchases is an excellent offer for most Brits. What needs to be looked at is responsible lending, by cracking down on the extension of debt to customers.
“The problem lies in the fact that when a new 0% credit card is taken out, the other card isn’t closed. Typically this means that someone with £5,000 worth of credit now has a £10,000 credit line – and the more cards they get, the worse the situation can potentially become.”