Credit Card News Banks' Clarity In Credit Card Lending Examined 3647496
Banks’ clarity in credit card lending examined
18 October 2004
The Treasury select committee is to see how far it’s recommendations to make borrowing simpler and safer have been implemented.
There was concern that the £60 billion wracked up by UK consumers in card debts was fuelled by ignorance on the part of debtors.
The committee recommended that an ‘honesty box’ was implemented on card application forms and statements, showing borrowers the real cost of their loans (i.e. how much interest would be charged on a £100 loan over three months).
Committee member Nigel Beard said that the banks that had not implemented recommendations yet were “not attuned to thinking about things from a customer’s point of view”.
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