A Competitions Commission enquiry into store cards has concluded by imposing new regulations on those who charge the highest rates of interest.
From now on, store cards that charge an APR of more than 25 per cent must explicitly inform their customers on their monthly statements that they may be able to obtain cheaper sources of credit.
The warning, which must be placed on the front page of the statement, must state to customers that the rate of interest they are being charged “may be higher than on other sources of credit available to you”.
According to the Competitions Commission, store cards have long enjoyed the protection of consumer ignorance.
Rory Taylor, spokesman for the Competitions Commission, said: “We are trying to make it clear to people exactly what they are paying – we want to ensure people are making informed choices.”
In related news, the Office of Fair Trading (OFT) has recently announced an inquiry into current account charges, following a six-month informal review.
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