House of Commons - Treasury - First Report

PDF: http://www.publications.parliament.uk/pa/cm200304/cmselect/cmtreasy/125/125.pdf

Here you can browse the report together with the Proceedings of the Committee. The published report was ordered by the House of Commons to be printed 10 December 2003.

CONTENTS

Terms of Reference


REPORT

Summary

The issues

Transparency

Transaction / penalty charges

Over-indebtedness and responsible lending

Store cards

Conclusion


1 Introduction

This Inquiry

The credit card industry

The level of interest rates charged

Regulatory environment

Self-regulation

European regulation


2 Transparency: increasing clarity in credit card charges

Transparency and competition

Summary Box

The need for a summary of key information

Content of Summary Box

Format and placing

Information on monthly statements

Annual Percentage Rates (APRs)

Interest calculation method

Risk-based pricing

Order of payments

Transaction / Penalty charges

Transparency

The level of fees charged

Promotional rates


3 Over-indebtedness and responsible lending

Over-indebtedness

Responsible lending

Automatic raising of credit limits

Increasing overall credit availability on transfer/conversion of balances

Inadequate credit checking

Credit card cheques

Minimum repayments

Other marketing practices

Payment protection insurance

Responsible borrowing


4 Store Cards

Background

Transparency

Interest rates

Retailers' responsibility

Point of sale practices

Conversion of store cards to credit cards


5 Financial literacy

Raising standards

Education in relation to debt


6 Conclusion

Conclusions and recommendations



Formal minutes of the Committee relating to the Report

Witnesses

List of written evidence

List of unprinted written evidence

List of Reports

MINUTES OF EVIDENCE - VOLUME II (HC 125-II)
Tuesday 1 July 2003
Wednesday 9 July 2003
Monday 14 July 2003
Tuesday 9 September 2003
Thursday 16 October 2003
Tuesday 4 November 2003

WRITTEN EVIDENCE - VOLUME II (HC 125-II)