Store Cards Too Expensive
Competition Commission provisionally rules that store card users are charged too much
15th September 2005
An investigation into the store cards industry by the Competition Commission has provisionally found that customers are being charged too much for using their cards, a situation brought about by a lack of competitive pressure in the market.
There are about 14 million store cards currently issued in the UK, and although the cards may be branded for use with around 70 retailers, there are only 6 major issuers.
The APRs charged on store cards average around 30%, compared to 15-20% for general purpose credit cards, and the Commission said that an uncompetitive market was working to keep the charges artificially high.
Proposals to remedy the problems centre around making the cardholders more aware of the high APRs charged, and of educating consumers about the dangers of high-interest borrowing.
Read More: BBC : Store card holders 'overcharged'
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