Robert Kenley, head of credit cards at moneysupermarket.com, suggests that credit consumers around the country are at an increased risk of debt management problems as a result of “hefty” store card repayment rates.
Mr Kenley’s comments come in the wake of an investigation order from the Competition Commission, which obliges store card providers to detail the annual percentage rates (APRs) on their credit deals in the interest of consumer awareness.
“While the measures put in place today aim to make the store card market clearer, this still is not enough,” he commented.
“A better action would be to force the card operators to cull their APRs, so that consumers cannot possibly be subjected to such high interest repayments.”
Store card-related debt management difficulties are adding to the personal debt mountain in the UK, which, according to the Credit Action charity, is already worth more than £1,310 billion.