More credit card transparency would benefit consumers

More transparency regarding credit card costs and interest rates would be of benefit to consumers, according to a debt advisory service.

The Debt Advice Bureau, a not-for-profit organisation, said that some progress has been made but needs to continue.

Spokesman Stephen Rose remarked that anything that makes the cost of credit card borrowing “clearer and more obvious to borrowers” is “obviously a boon”.

He added: “I doubt it would make any difference to the number of people taking out credit cards, but those who are taking them out are in a position whereby they can know more and are better informed.”

This week, the Office of Fair Trading announced it would be launching a six-month investigation into the credit card industry.

Consumer group Which? said the announcement was welcome, but it would have preferred a detailed look at interest rate calculation mechanisms rather than the credit card industry as a whole.

© Adfero Ltd

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