Product category:
General insurance
News Release from: uSwitch | Subject: Banking
Edited by the Insidemoneytalk Editorial
Team on 28 June 2007
The OFT's announcement to improve
consumer information on credit cards
over the next six months
Mike Naylor, Personal Finance Expert at independent online price comparison and switching service uSwitch.com comments:
"The OFT's investigation is great news for consumers and should help to stamp out the frenzy of sneaky money making schemes implemented by credit card providers following the cap on penalty charges a year ago" ""Our recent credit card report fully supports the OFT's findings that consumers 'never compare cards at all' with over half (57%)1 of those surveyed admitting that they never compare their existing deal with the rest of the market - typically sticking with the same credit card for six years
This article was originally published on Insidemoneytalk on 23 Feb 2007 at 8.00am (UK)
Related stories
uSwitch: Lloyds move to implement GBP35 fee for credit card customers
Lloyds latest move to implement a GBP35 fee for credit card customers that 'display low usage' is set to generate a total income of GBP1.79 million1.
uSwitch.com comment on Citibank's latest move
Nick White, Director of Financial Services at uSwitch.com comments on Citibank's move to automatically upgrade their Sterling current account customers to a Citibank Plus £10 a month packaged account:
This behaviour allows credit card providers to continue to pull the wool over their eyes and introduce a plethora of so called 'competitive deals' or changes to existing terms and conditions which just serve to mask new money making tactics.
Investigation into purchases/introductory offers "A great example of this is the new 13 month 0% balance transfer deal with a 0% deal for 3 months on new purchases".
"Providers such as Mint, Natwest and RBS recently launched these deals, which are great if the consumer understands them properly but hugely profitable for the Royal Bank of Scotland group if they don't".
Further reading
uSwitch.com comments on the Royal Bank of Scotland's Group profit announcement of GBP9.414 billion
Following the Royal Bank of Scotland's Group profit of £9.414 billion, Nick White, Director of Financial Services at independent price comparison and switching website uSwitch.com, comments:
uSwitch.com comments on the OFT's announcement of an 'in depth study' into bank charges
Following the Office of Fair Trading's (OFT's) announcement of an 'in depth study' into bank charges today, Nick White, Director of Financial Services at uSwitch.com, comments:
"For example, a 13 month NatWest 0% balance transfer deal on the average balance transfer of £1,812 should have saved the consumer around £236.322 in interest".
"However, due to the order of repayments, purchases of ?3,000 would end up costing ?343.683 in interest and will completely wipe out the interest saved on the 0% balance transfer".
"Investigation into cash advances "Withdrawing cash on credit cards is also very complicated and a real area of concern for uSwitch.com.
Recent research showed that 72%4 of people did not understand the charges incurred for making cash withdrawals using a credit card and almost one million people believe the charges are exactly the same as those incurred whilst using a debit card".
""Overall, we are pleased to see the OFT stepping in at long last but consumers cannot afford to sit around and wait six months for this investigation to be completed".
"Consumers need to carefully examine every piece of correspondence they get from their credit card provider and make sure they are not paying more than they need to".
"Switching credit cards is a quick and easy process and can save consumers money".
"For example, consumers could save £2185 in interest on a 13 month 0% balance transfer deal so it's definitely worth doing." For more information visit www.uSwitch.com or call 0800 093 06 07.
• uSwitch: contact details and other news
• Email this article to a colleague
• Insidemoneytalk Home Page
