Call for single card rate formula

By Joe Morgan

CONSUMER groups urged the Government to force banks to use one method to calculate interest rates on credit cards. Card companies, which use about 20 different methods of calculation, have defied calls for a single method, saying it would be “anti-competitive”. But, as the Consumer Credit Bill was published, Which?, formerly the Consumers’ Association, said that the different methods left consumers confused and unable to compare offerings. Which? and the National Consumer Council (NCC) consumer think tank, also called for the Bill to make banks and credit card companies share full information on the debts of customers in order to lend responsibly.