The OFT's industry consultation to improve consumer understanding for credit cards

Edited by the Insidemoneytalk editorial team Jun 28, 2007

Rob Kenley, head of credit cards at price comparison website moneysupermarket.com, said:

"The OFT is to be congratulated on its industry consultation to make the cost of credit cards easier for consumers to understand".

"Time will tell whether the industry will get behind it too".

""moneysupermarket.com recognises that APR does not give people an accurate understanding of the cost of credit.

It is not just the way interest is calculated but the way the card is used that affects the costs.

Cash advances, the order of payments and charges such as default fees and foreign currency fees must all be considered in this review to get a transparent system in place".

""The OFT has invited the credit card industry and consumer bodies to take part but participation is voluntary".

"It will be interesting to see which providers choose to take part in the consultation process".

"moneysupermarket.com is eager to see this move forward and is pleased to offer its support in the proposed development of tools to make it easier for consumers to compare the cost of credit cards.".