More must be done to stop credit card ‘rip-offs’, say Lib Dems

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More must be done to stop credit card ‘rip-offs’, say Lib Dems

The Liberal Democrats have hit out at what they describe as “inadequate” attempts by the government to help consumers understand how much interest they are being charged by card issuers.

In response to a report issued today, Lib Dem shadow chancellor Dr Vincent Cable demanded that more be done to make interest payments clearer.

Internet bank Egg reported that while 81 per cent of customers expected two credit cards with the same APR to result in the same interest rates, one card could lead to 76 per cent higher charges than the other.

“How can we make sensible choices about borrowing, if the way we are charged interest is so confusing?” Dr Cable asked.

“Even a mathematician would have to stop and think twice before working out which credit card offers a better deal, despite them having the same APR at face value.

"Despite all the demonstration of the lack of transparency in credit card charges it's very clear there is still a massive rip off at the expense of consumers.”

He went on to predict that the government's reply to the Treasury Select Committee's report on the subject would be “completely inadequate” and would not prevent the credit card companies' “blatant profiteering”.

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