Credit Cards Online Information

Comparing the cost of credit would be much easier if lenders all quoted interest rates in the same way. So it is bizarre that the Government has this week decided to reject a recommendation from the Treasury Select Committee that lenders should have to adopt a standard formula for advertising interest rates.

The Department for Trade and Industry believes such rules might be counter- productive, reducing choice for consumers. Choice is a familiar mantra with this Government, which regularly uses the concept as a reason not to support campaigns by consumer bodies. It was the line trotted out, for example, when ministers refused to ban junk food in school dinners.

In this case, the Government has fallen for a spurious argument peddled by credit card lenders. These companies are engaged in a frantic price war " all too often, sneaky charges and complicated interest rates are their way of clawing a few pounds back from borrowers. As a result, it is difficult to make an informed choice about the cost of plastic. At a time when consumer credit is at epic proportions " borrowing topped pounds 1 trillion for the first time last year " that makes no sense at all.

Sometimes, governments have to take action to protect people from themselves. Expensive credit cards and loans are the Turkey Twizzlers of the financial services industry. But until the health warnings on pricey plastic are made more prominent " with clearer information on what borrowing actually costs " people will keep piling on the pounds.

# posted by Medical Information : 2:06 AM