Credit card firms are still not including summary boxes
Summary boxes shunned by credit card lenders
Wednesday, 27 Jul 2005 12:23
The majority of credit card lenders do not put summary boxes detailing the basic rates charged by cards, on their monthly statements.
However, while only a few credit card lenders include this information two out of three people think they are a good idea, new research from Halifax credit cards finds.
"Customers need to be aware of the rates and charges applicable to their particular credit card. Summary boxes make this possible," said Ian Corfield, head of Halifax Card Services.
"Although many lenders feature summary boxes in their marketing literature, many fail to include it on their credit card statements."
Currently credit card lenders including Nationwide, Barclays, Halifax, and egg have summary boxes on their statements, but other lenders have said technological challenges mean they could not be introduced until 2006.
And this attitude has been criticised by an influential group of MPs.
The Treasury Select Committee said the introduction of summary boxes on statements: "Is essential in ensuring that consumers are kept informed of the key interest rates and charges of their credit cards and are properly equipped to shop around and determine whether they could obtain a better deal elsewhere.
"We do not believe consumers should have to wait until the middle of 2006 for the summary box to be introduced on monthly statements in a consistent manner across all of the industry."
And today Halifax added its voice to the call. Mr Corfield said: "Summary card boxes are an essential tool in the comparison of credit cards. Customers can only benefit from their introduction. We're calling on all lenders to introduce personalised summary boxes as a matter of urgency."
As an example, Halifax points out that its credit card statements include the following information in a summary box on the front page:
Their own credit limit and available credit
Last month's payments and credits
Interest rates for balance transfers, purchases, cash and cheques
The appropriate interest free period
The minimum payment required and payment date together with a 'health warning' about making only the minimum payment
Cash advance fee - if applicable
Any fees and charges which are applicable
How payments are allocated
Next month's estimated interest