Credit card holders call for SMS alerts

The majority of adults in the UK would like to be able to authorise payments of credit card bills via SMS text message, according to a new survey. The survey, by Upaid, found that three-quarters of credit card holders believe being able to use text messaging in this way would give them more control over their finances. The research also revealed that one in four people using direct debit to pay credit card bills see their debts mount up because they only pay the minimum amount each month. "Our survey shows that credit card users are aware that paying by the minimum amount can cause long term debt but they don't have a simple enough mechanism to adjust their payments each month," Ashley Ward, CEO of Upaid, told Finextra. The Upaid managing director said that a number of major lenders are already considering using text messaging as a reminder and payment authorisation service. Nationwide launched a text balance alert service for its FlexAccount customers in January this year.

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.