Credit cards should carry 'cigarette pack-style warnings'
Credit cards should carry cigarette pack-style warnings about their high repayment costs, a former banking chief said today.
Jim Spowart, who set up the internet bank Intelligent Finance, has argued all cards which have interest rates higher than 10% above the Bank of England's base lending rate should come with advice labels.
He has written to Chancellor Gordon Brown about his proposal, saying shoppers deserve better protection from credit firms' "greed".
Mr Spowart said that while the cost of personal loans has come down significantly and some are available at 5.8%, credit cards have remained an easy "cash cow" for banks and lenders with the average being 15.9%.
Jim Spowart, who set up the internet bank Intelligent Finance, has argued all cards which have interest rates higher than 10% above the Bank of England's base lending rate should come with advice labels.
He has written to Chancellor Gordon Brown about his proposal, saying shoppers deserve better protection from credit firms' "greed".
Mr Spowart said that while the cost of personal loans has come down significantly and some are available at 5.8%, credit cards have remained an easy "cash cow" for banks and lenders with the average being 15.9%.
Read more at: Credit cards should carry 'cigarette pack-style warnings'
posted by e-borneo.com @ 4:51 PM
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