Apacs: “Significant progress” on credit card transparency
October 26, 2006
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The UK payments association Apacs has reported significantly improved transparency in the credit card industry over 2006.
A new report has found that the industry has opened information up to customers, helping them to borrow more responsibly.
Key initiatives include the summary box to be printed on all credit card cheques by the end of 2006, which lays out a credit card’s vital features, including APR, interest rates and possible charges in standard terminology.
"The past year has seen the credit card industry make significant progress on the transparency agenda," said Paul Smee, Apacs chief executive.
Credit card companies have also made a number of agreements around increased data sharing.
They will pinpoint consumers making numerous cash advances and making minimum repayments. Data sharing will begin in earnest in 2007.
Ian McCartney, minister for trade, investment and foreign affairs, recently recognised the advances the credit industry has made in information sharing, but stressed that more must be done.
"As part of our over-indebtedness strategy we want lenders, where appropriate, to share relevant data about the amount of credit that is available to an individual consumer and their credit use," he said.
Written by Peter Kenny · Filed Under News Credit Cards
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