Many Britons do not know the correct order in which their credit card payments are processed, according to a new survey from a financial services provider.
Nationwide revealed in its report that some 69 per cent of respondents claimed not to know the order in which their repayments are processed, with 18 per cent believing that the longest-standing debts are paid first.
This is despite the fact that two-thirds said it is “important” that they find a credit card provider that allows the most expensive debts to be paid off first, which could allow consumers the chance to look around for a credit card that allows this.
Jeremy Wood, divisional director at Nationwide, remarked: “Many credit card providers use low introductory rates to lure people into opening an account. These offers can look very appealing, but when you scratch beneath the surface you discover that credit card holders often don’t receive the full benefit of these low rates.”
He added that it is “unacceptable” that more than two-thirds of respondents did not know the correct order in which their repayments are allocated to different types of debt – something that the Office of Fair Trading (OFT) should act on.
Last year, the OFT investigated credit card and bank default charges after a super-complaint was made against the industry.
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