Credit cards chastised for opaque terms and conditions
Credit card providers need to get better at explaining the terms and conditions of their cards to consumers, a financial expert has claimed.
Tobias Van Der Meer, managing director of moneysupermarket.com, said many consumers are unaware how credit card repayments work.
Two-thirds of those polled by moneysupermarket.com didn’t know that the cheapest debt is paid off first on the majority of credit cards, and many consumers don’t realise that their debt accumulates if they only make the minimum repayment.
“Moneysupermarket.com believes it would be fairer to consumers, if their most expensive debt was paid off first,” Van Der Meer said.
“The consequences of paying just the minimum payment should be made clearer,” he added.
Van Der Meer believes credit card providers need to be open and honest with consumers on interest rates, minimum repayments, and credit limit increases.
“Transparency is essential to making this market work effectively and fairly for consumers so they clearly understand the pros and cons of their product,” he said.