New Credit Card Advertising Rules

New rules for credit card adverts come into force today, with greater clarity in rates displayed

1st November 2004

New regulations on the advertising of credit cards came into force today, as a result of revisions to the Consumer Credit Act legislation.

The changes are intended to increase transparency for the customer, making it easier to compare credit card offerings on a like-for-like basis.

One of the biggest changes is that when any interest rate is shown, there must also be shown the 'typical' rate that at least 66% of customers will be offered, and this typical rate must be 'more prominent' in the advertisement.

This means that although a company may offer a low rate to its most affluent and credit-worthy customers, the most prominent rate shown in the adverts must be the one offered to the majority of applicants, and this will likely be higher than rates previously shown.

This may give the appearance of cards suddenly becoming more expensive, but regulators and consumer groups argue that marketing material is now less misleading by showing the real costs that most consumers will pay.

Foros | Personal Loans | Credit Card Consolidation | Bank Accounts | Comprar vivienda Denia