Lamb: Credit Card Report Blows Gaff on Unacceptable Practices

10.49.09pm UTC (GMT +0000) Thu 18th Dec 2003

Liberal Democrat Shadow Treasury Minister and member of the Treasury Select Committee, Norman Lamb MP, commenting on the publication of the Committee's report on credit cards, said:

"This report blows the gaff on the unacceptable sales and marketing practices used by companies offering credit cards, inertia on the part of the Department of Trade and Industry, and the complacency of the Office of Fair Trading."

The Committee's report criticises the OFT for failing to effectively tackle uncompetitive practices, and the DTI for taking too long to amend relevant legislation.

Norman Lamb also said: "I am pleased that the report presents a balanced picture, recognising the potential benefits of credit cards but also challenging the outrageous lack of transparency surrounding the real costs of credit.

"We will only get a truly competitive credit card market, hopefully also delivering lower prices for consumers, if there is clear and comparable information on each card. There has been some positive feedback to this idea from the industry during the Committee's inquiry, and I hope that it will be taken up. There is an urgent need for more clarity."

Throughout the inquiry, Norman Lamb has pursued the idea of credit card companies publishing the cost of credit in pounds and pence by way of 'scenarios'. He said, "I welcome the fact that the report encourages the industry and its regulator to pursue this further."