Latest Debt News
Credit card users waste £500m
15/04/2008 10:45:00
Consumers will have paid an estimated £500 million in interest payments in the 12 months since it was announced that providers will have to highlight the order of their credit card payments, a finance expert has said.
The Nationwide Building Society has called for increased transparency with credit cards since it welcomed the announcement from the Department for Business, Enterprise and Regulatory Reform (BERR) in April 2007.
It said that providers will need to display a message on every credit card statement, highlighting how payments are allocated, from October 2008.
Jeremy Wood, divisional director at Nationwide, said that when BERR made their announcement over a year ago, he hoped credit card providers would do the decent thing and clearly tell their customers how their payments are allocated on their statements.
"12 months have already passed and consumers are still being kept in the dark. We call on the industry to do the right thing for consumers and implement the change now," he added.
Figures from MoneyExpert revealed that the average interest rate on credit card purchases has increased by 0.56 per cent in the past six months.
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