Store cards ‘need crackdown’
Store cards have come under criticism from online financial advice company MoneyFacts.co.uk, for their continued “unethical” policies.
The cards were put under pressure last year by the Competition Commission, in an attempt to reduce the number of consumers with monstrous rates of debt.
debt has been easy to obtain on such cards due to the attractive offers such as money off their purchases, which are put forward to shoppers as they reach the checkout.
The Competition Commission last year ordered that all store cards should come with warnings against only repaying the minimum monthly allowance, should contain information on penalty fees, and have the APR visible if it is 25 per cent or above.
One financial expert from Moneyfacts warned consumer against such cards in no uncertain terms: “The Competition Commission must take further action to protect consumers from these exorbitant rates.
“Don’t get lulled into signing for a card unless you are going to make a substantial discount on your initial purchase and repay your balance in full.”