Annual credit card statements launched

| April 2, 2012
Annual credit card statements launched

Consumers are used to receiving a monthly credit card statement, either online or by post but from today they will receive an annual statement as well.

The initiative has been launched by the UK Cards Association and the Department for Business, Innovation and Skills, as part of the credit card industry’s efforts to be more transparent about charges.

The statements will give consumers a clearer picture of their credit card spending over a year and are designed to counter criticism over the information provided by credit card companies.

Credit card holders will receive the new statements on the anniversary of when their card was issued.

All statements will provide the same information, regardless of which provider issued the card, including point-of-sale transactions, cash advances, balance transfers, along with any fees, interest charges and other costs.

Melanie Johnson, Chair of The UK Cards Association says: “Annual credit card statements will help empower customers by giving a clear view of how they’ve each managed their plastic over the past year.

“By clearly setting out costs and charges, this industry initiative could help customers get a better deal, either by being more savvy about how they use their current card, or by changing to another account that’s a better fit.”

Price comparison site MoneySupermarket.com is also calling on credit card holders to check if they could benefit by switching cards.

In a survey of its users, the site found that 40 per cent looked for a good balance transfer offer when choosing a new card, while 23 per cent looked for a long zero per cent period on new purchases.

Only seven per cent said that a competitive APR was the most important factor.

Kevin Mountford, head of banking at MoneySupermarket.com said: “Understanding how you spend on your card gives you the perfect opportunity to switch to a card that suits your needs, so you can make the most of your finances and ensure you’re not paying over the odds.”

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