OFT publishes credit card comparisons report

PRNewswire-GNN London 11 February

London, 11 February /PRNewswire-GNN/ --

OFFICE OF FAIR TRADING News Release (19/08) issued by The Government News
Network on 11 February 2008
The OFT has published its report into credit card comparisons, which makes
a series of recommendations to help consumers choose a credit card. Download
a copy of the report from the OFT website : www.oft.gov.uk.

The report follows a super-complaint from Which? that highlighted that
consumers choose credit cards without understanding all the issues that
affect the cost of the card. OFT research shows that 70 percent of credit
card holders did not shop around before selecting their current card, and
that this meant they could be placing themselves at a financial disadvantage.

Research into the report involved looking at issues surrounding the
comparative costs of using different credit cards for purchases, cash advances,
introductory offers and payment allocation. The research followed work with
the credit card industry, consumer groups, other regulators, government
bodies and other key stakeholders. The main recommendations are :

* the introduction of an independent credit card price comparison website
run by the FSA,

* improvement to how information is presented in credit card issuers'
summary boxes,

* standardisation of terminology used by credit card issuers in their product
literature, and

* improvements to consumer education about the benefits of shopping around
for a credit card.

The OFT will work with the card industry to implement the improvements to
summary boxes, standardisation of terminology and education campaign.

John Fingleton, OFT Chief Executive said:

'No-one wants to throw money away, but consumers who don't shop around
for credit cards are doing just that. It is essential that consumers are
given the right tools to make comparisons between credit cards more easily,
and we can achieve this through some of the recommendations announced today
which have received widespread support from the FSA, APACS and the rest of
the financial sector.'

The OFT will work with all the relevant parties to implement these
recommendations.

NOTES

1. The right to submit super-complaints was created by section 11 of the
Enterprise Act 2002. A super-complaint is defined under section 11(1) of the
Act as a complaint submitted by a designated consumer body that 'any feature
or combination of features, of a market in the United Kingdom for goods or
services is or appears to be significantly harming the interests of consumers.'

2. On 1 April 2007 Which? submitted a super-complaint to the OFT about credit
card interest calculation methods. See Which? website for details.

MEDIA enquiries: 020 7211+
Corinne Gladstone  8899  Alex Hunter  8900
Jonathan Marciano  8133 Nnenna Oleforo 8898
Out of hours: mobile: 07774 134814 messages: 020 7211 8961
Copies of press notices: Ext. 8993
http://www.oft.gov.uk


PUBLIC enquiries: 0845 7224499 enquiries@oft.gov.uk
OFT reports and consumer information leaflets are available free from:
OFT, PO Box 366, Hayes UB3 1XB 0870 6060321 oft@eclogistics.co.uk