Store card confusion ‘could lead to debt’

Confusion surrounding store card terms and conditions could lead to debt worries for many.

Steven Law, president of R3, has revealed that 66 per cent of the organisation’s members have seen cases where individuals have signed up for the payment option without knowing what they are letting themselves in for.

The specialist was speaking in response to a new announcement by the Conservative and Liberal Democrat coalition that stated excessive rates on credit and store cards will be banned.

Mr Law said his company welcomed the proposals, as well as the introduction of a seven-day cooling off period for store cards.

“The practice of financially unqualified shop staff offering store cards at point of sale means that many vulnerable consumers don’t understand that they are entering into a legally binding contract,” he added.

Last week, Craig Phillipson, managing director of Shopworks UK, stated consumers are still cautious when spending because uncertainty remains concerning the state of the economy.

By Joe Shervin