Moneynet welcomes move to protect consumers from sky-high store card charges

Inflated APRs on store cards are likely to come under increasing pressure from consumer groups following the Competition Commission’s ruling this week that customers must be told that they can get cheaper credit elsewhere

“We have always warned consumers about the pitfalls of using store cards,” said online data comparison site Moneynet (http://www.moneynet.co.uk ) chief executive Richard Brown.

“The rates of interest are astronomical, running to five times the Bank of England base rate. It’s a wonder that these companies have been getting away with it for so long.”

High Street shops often use the tempting ploy of an immediate discount on a purchase to persuade consumers to sign up for a store card.

The prospect of making an immediate saving of 10% is hard to resist, acknowledges Brown – why pay £50 for a pair of shoes if you can get them for £45?

“But the reality is that most customers subsequently fail to control their spending and run up a debt that attracts horrendous interest charges: some control over these punitive charges is way overdue.”

Consumer enquiries: 0208 460 2833/ http://www.moneynet.co.uk
Press enquiries:
Richard Brown, Chief Executive, 020 8313 9030
David Andrews, David Andrews Media Ltd 07941 255855/01273 774109

Editor's notes
Moneynet.co.uk is the UK’s longest established online personal finance research and data analysts. The company offers consumers a choice of thousands of low cost financial services products. From mortgages, personal loans to motor, home and medical insurance, credit cards, savings accounts and best buy fixed rate products, Moneynet is one of the most comprehensive online services of its kind in the UK. Founded by chief executive Richard Brown, the Moneynet brand is destined to become one of the UK's major players in consumer finance products.