Thursday, March 09, 2006

Warnings on Credit Cards

A recent story out of the UK got me thinking that there might be a good reason to print warnings on credit cards and credit card statements.

The article tells of store braned cards that charge 30% per month interest rates compared to 10-15% for conventional credit cards.

After looking at the interest and ancilliary rates charge, The Competition Commission in Britton is telling
card providers, who charge an annual percentage rate (APR) above 25 per
cent to print warnings on monthly statements that cheaper credit may be
available elsewhere.

Not unlike warnings that are common on tobbacco and alcohol, the credit warning may serve to protect both the consumers and credit card companies.
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