Clearer cards from HBOS
30 June 2004
The UK's largest issuer of new credit cards has welcomed government calls for improved clarity.
HBOS feels the Treasury Select Committee's drive to make credit cards clearer with the introduction of summary boxes identifying all APR rates will greatly benefit users.
In response to the TSC's call for improvements to the credit card industry HBOS has itself introduced a number of initiatives for its customers.
The committee argued for interest payments to be made clearer for consumers, and the introduction of an "honesty box" on card applications and bills explaining charges and interest payments.
In line with these proposals HBoS added summary boxes to all of its monthly credit card statements.
This included the warning that only making the minimum payment actually maximises the interest you will pay.
The Treasury Select Committee's report into the "Transparency of Credit Card Charges", published in December, concluded that: "to improve competition, consumers need to be kept informed of the charges and interest rates applicable to their credit card....the Summary Box should be extended so that it appears on monthly statements."
Additionally, in October 2003 HBOS became the first provider to introduce a credit card, which charges the customer the same rate whatever the transaction.
With this was provided a summary box on the monthly statement detailing all of the charges applicable to that card.