Credit cards ‘keep users protected’

Low-income individuals are more likely to be adversely affected when they do not receive prepaid goods, new research has indicated.

Consumer Focus found that those on lower salaries are less likely to have a credit card, which it noted was the best way of protecting payments.

According to the organisation, one-ten customers never get goods or services they have put the money down for in advance, with only 48 per cent recouping their outlay.

Steve Brooker, markets expert at the organisation, said that consumers need to be better protected, especially considering the current economic climate.

He remarked: “Consumers are losing out in the fight to reclaim money from bankrupt businesses. And the problem looks set to worsen given the dramatic rise in companies going under this year.”

Last month, The Co-Operative Bank announced that its flat rate charges on its Clear credit card contributed to the product’s uptake increasing by ten per cent in the last year.

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