OFT issues credit card proposals

Tue, 12 Feb 2008

Almost three-quarters of people did not shop around before selecting their current credit card, new research shows.

The study, carried out by the Office of Fair Trading, was launched after Which? launched a "super-complaint" saying that consumers picked a credit card without understanding how much it would cost them.

In response to the complaint the Office of Fair Trading has produced a number of recommendations in order to make things clearer for consumers.

These included the introduction of an independent credit card price comparison website, run by the Financial Services Authority, a standardisation of terminology used by credit card companies and an improvement in how credit card information is presented in summary boxes.

It will also seek to educate consumers about the benefits of shopping around for a credit card.

John Fingleton, chief executive of the Office of Fair Trading, said: "No-one wants to throw money away, but consumers who don't shop around for credit cards are doing just that."

In January MoneyExpert.com said that more than five million people missed a credit card payment in the last six months of 2007.
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