Watchdog Acts Over Complicated Credit Card Deals
Sifting out the wheat from the chaff should become easier in the UK credit market after a new initiative from the Office of Fair Trading.
In a recent announcement the OFT unveiled “a new programmed of work with card providers and consumer groups to make the cost of cards easier to understand.”
Yippee!! This is long overdue in the UK. Congratulations to consumer group Which? who are known to have exerted pressure on this issue stating that “consumers are choosing credit cards without understanding all the issues that affect the cost of the card.”
Interestingly OFT research indicates that most card holders don’t even bother to compare credit card deals. It’s hardly surprising when you see the sheer volume of small print bundled with each deal.
OFT chief executive John Fingleton said: ‘Credit card pricing has become increasingly complex, with many new dimensions such as interest-free periods. While these . . . give additional choice and value to consumers, they can make it harder for consumers to make informed decisions.
‘This work will consider how pricing information might be improved so as to enable better product comparison by consumers, without stifling valuable competition and innovation that benefits consumers.’
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