“Excessive” store card rates highlighted

Price comparison service uSwitch claims that the new requirement for store card providers to detail annual percentage rates on payment statements issued to customers does not adequately protect consumers from accumulating significant amounts of debt.

The measures have been introduced following an inquiry by the Competition Commission into how consumers are affected by store cards and how a lack of relevant product information might lead to debt management difficulties.

Nick White, director of financial services at uSwitch, said: “Whilst the new rules for store cards…are a small step in the right direction in terms of improving transparency, it appears the Competition Commission is closing the stable door after the horse has bolted.”

Last month, a so-called super complaint was made to the Office of Fair Trading by Which? regarding the range of methods used by financial service firms to calculate rates of interest on credit card offerings.