Lenders already committed to greater transparency

Responding to the publication of the Treasury Committee’s Report on the Transparency of Credit Card Charges, the Finance & Leasing Association (FLA) has confirmed that its members are committed to transparency in consumer lending, including credit and store cards.

Martin Hall, Director General of the FLA, the largest UK representative organisation for the UK consumer credit and asset finance sectors, comments:

“Our members are committed to responsible lending and greater transparency, including upfront information similar to US style ‘honesty boxes’ – commonly known in the UK as summary boxes.

"We have been working on openness and full disclosure for a long time, even before the focus from the Treasury Committee. The FLA reached agreement over the summer with all our store card members that they will include a ‘summary box’ containing key information such as APRs and interest free periods. This will make it easier for consumers to compare like-for-like and shop around for the best deals.

“The summary box will be positioned prominently on store card adverts, direct mail promotions, freestanding leaflets and inserts. So consumers will have easy access to the full facts about cards. However, we do not accept the Committee’s suggestion that the print in the box should be of a particular size. It is generally accepted that prescribing a minimum font size, for example, is not appropriate for all media, including computer screens. What is important is a commitment to openness and prominence of information.

“Paying on plastic is highly valued by both consumers and retailers. The industry is very competitive with great deals including introductory offers and discounts. Rates and product features do vary, so it is important that consumers who use our members’ cards are clear about the product, charges and interest rates. The FLA’s Consumer Code of Practice requires members to be open and transparent so that consumers don't feel duped. We believe the proposed ‘summary box’ helps make products crystal clear."