Credit card industry must change, MPs warn
MPs tell credit card issuers to undergo reforms quickly, or risk losing consumers’ trust.
John McFall, chairman of the Commons Treasury Select Committee, sent a letter to credit card issuers demanding they speed up the process of making the industry more “transparent”.
He warned that “borrowing scenarios” must be made clearer to customers, with particular reference to the way interest charges are calculated.
The committee published its report into the Transparency of Credit Card Charges on December 17th. It made a number of recommendations towards the goal of ensuring more transparency and competitiveness in the market together with fairness for consumers.
Mr McFall today wrote to the chief executive of the main industry body – the Association for Payment Clearing Services (APACS), which represents all the leading card issuers. The letter was copied to the chief executives of Barclays, HBOS, Lloyds TSB, MBNA, Nationwide and RBS.
In the letter he says that while there has been progress on some issues, in other areas it is worried the industry’s response “has been inadequate.”
“I hope there is no question of some in the industry seeking to create obfuscation around these issues, rather than to seek genuine solutions which will benefit consumers and the image of the industry,” the letter said.
The MP pointed out that a lack of commitment from lenders “is not constructive” and that the a perception that the industry only does the minimum necessary, “would not be acceptable to either the committee or to consumers.”
