Prime minister backs 'honesty boxes'

The prime minister has backed calls for "honesty boxes" to be published by credit card companies, which would help consumers make direct comparisons between the overall costs of credit cards, writes Sean Coughlan.

Saturday May 10, 2003
The Guardian

The prime minister has backed calls for "honesty boxes" to be published by credit card companies, which would help consumers make direct comparisons between the overall costs of credit cards.

Speaking in Prime Minister's Questions this week, Tony Blair said the Department for Trade and Industry had been meeting with the credit card industry to see how this might be implemented.

The honesty boxes would be clearly presented information panels showing interest rates, charges and benefits. They would have a standard format so that consumers could see the full package of charges for any kind of card offer.

"There is indeed enthusiasm for the so-called 'honesty boxes' to set out in advertisements or application forms the key applicable interest rates and charges. I have no doubt at all that that will be an important way to ensure when people borrow, they borrow responsibly," said Mr Blair.

The prime minister was responding to calls from Barry Gardiner, MP for Brent North who is also representing Patrick Cullinane. Mr Gardiner said consumers now owe £48bn on credit cards, and that they urgently needed an easier way to compare the "complicated fees and charging structures".

The Consumer Credit Counselling Service welcomed the prime minister's support, saying that "finally credit cards are to be treated as a sophisticated product, giving consumers the information they need to choose the right product".

Nationwide, which has introduced its own "consumer box", said it now looked forward to this type of simply presented information being provided across the credit card industry, "bringing a greater degree of transparency to a very complex market".