Store Cards Industry to be Investigated
Competition Commission to investigate the Store Card Industry
18th March 2004
The Office of Fair Trading has referred the store card industry to the Competition Commission, after a previous report found serious worries over the way the industry operates.
Store cards are a form of credit card only usable in a particular store or chain, and they often offer discounts or other lures to entice customers into applying. However, store cards generally have much higher interest rates than mainstream credit cards - around 10% higher on average.
The industry is dominated by US company GE Consumer Finance, which holds around 60% of the market, and the OFT is worried that a lack of competition is keeping interest rates artificially high.
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More on Store Cards : New Rules on Store Cards (News, 07/03/2006), Lack of Competition Makes Store Cards Too Expensive (News, 15/09/2005), Commission's Concerns Over Store Cards (News, 12/01/2005), Store Cards : Staff Ignorant of Costs (News, 02/12/2004), Store Cards Inquiry - More Details (News, 22/09/2004), See all 7 Store Cards stories >>> |
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