The Consumer Credit Act is flawed and needs to be changed to protect the public from running up debt, it has been claimed.
MPs have called on the government to amend the act following reports that consumers are receiving unsolicited credit cardsin the post.
The latest company accused of sending credit cards to customers that have not asked for them is clothing and furnishings provider Laura Ashley.
Under the terms of the Consumer Credit Act, there is nothing illegal about sending out unsolicited cards.
Laura Ashley credit cards are provided by GE Capital, which also backs around 50 per cent of the other store cards on the UK market.
Liberal Democrat Treasury spokesman Vincent Cable fumed: “We called for the law to be changed in 2005. In the meantime, thousands more people have found themselves with credit card they didn’t ask for and do not want.”
In related news, UK payments association Apacs has advised consumers that the sheer variety of credit cards products on the market means that it is important to “shop around” to obtain the one that best suits their particular needs.
© Adfero Ltd