Survey reveals woe and ignorance

The majority of credit card customers do not know how their providers arrange repayments and many say they would be shocked or angry to learn that most ensure the least expensive costs are paid off first, ensuring more interest is charged, a survey has found.

Nationwide Building Society revealed that 63 per cent of customers did not know what the arrangements were for the repaying of debts, compared to 69 per cent in a similar poll in 2007.

Most providers clear the lowest-interest items – a system known as adverse ordering – and 65 per cent said this was an unfair system, while 67 per cent stated that the government should intervene to outlaw the practice.

The survey found 56 per cent would describe themselves as ‘angry’, ‘shocked’ or ‘surprised’ to learn they were having their payments ordered adversely.

Product and marketing director for Nationwide Chris Rhodes commented: “This is a fairness issue and a positive order of payments is now the fairest way forward for consumers.”

Consumer Credit Counselling Service spokesperson Frances Walker recently said it was inevitable that some people would have to resort to spending heavily in credit cards to meet their Christmas spending commitments.

Leave a Reply

Your email address will not be published. Required fields are marked *