(19/11/2010) Compareandsave.com’s CCD Conference helps smooth deployment of legislation to make Credit Cards more transparent for UK consumers

All the key players in the UK credit card industry were represented in Docklands, London, last week (Wednesday 10th November 2010) as Compareandsave.com, with partners, hosted a conference to help guide the credit card industry through the deployment of the regulations detailed in the Consumer Credit Directive (CCD), which come into force on 1st February 2011.

Although little known outside the credit industry, the regulations will fundamentally change the way credit products have be advertised and sold in the UK and across Europe. The new regulations seek to increase the transparency with which products are marketed to consumers by making products directly comparable using a single Annual Percentage Rate (APR). In doing this, the regulations require a host of new terminology to be presented to, and understood by, consumers.

Most of this new terminology is alien to even the most-savvy of UK credit card shoppers and there are concerns that, in the short term, it may lead to confusion for shoppers looking to compare products.

Michael Jacklin, Head of Credit Cards and Compliance at Compareandsave.com, said:

“Concerns were raised during the conference that the new terminology required by the CCD, such as ‘Representative APR’ and ‘Representative Example’, may initially be a source of confusion for UK consumers looking for credit cards.

“The date for implementation was also discussed because February, when the changes come into force, is a key time for transferring credit card debts to balance transfer credit cards to avoid incurring interest on Christmas shopping and big purchases made in the New Year sales,” he added.

Despite anxieties regarding the timing and initial confusion the changes may cause, the credit card industry does appear to have wholeheartedly embraced the changes as good news.

“In the longer term, making products more directly comparable will give consumers a fairer understanding of products and therefore enhanced confidence when shopping for credit, which must be good for the whole industry,” Mr Jacklin concluded.

The findings of the conference are being shared with the OFT. Compareandsave.com will subsequently issue further findings to the press in the form of a press pack, when they become available.
 

-Ends-

Mr Jacklin is available for further comment. For further information please contact Emma Skinner at Compareandsave.com on 0207 195 1967 or email emma@compareandsave.com.

About Compareandsave.com

Launched in 2005, Compareandsave.com, a part of the Bankrate Online Network, is a leading online credit card marketplace, where consumers can search, compare and select the best credit cards and personal finance products for their needs.

Every year, more than 5 million UK consumers visit Compareandsave.com to compare personal finance products.

The free online resource Compareandsave.com evaluates hundreds of credit card and savings offers by category, includes the latest best buys on products ranging from credit cards, prepaid cards, loans and savings accounts through to broadband. It also provides consumers with the tools, latest news, money saving advice and tips from the industry to help them stay on top of their finances and plan for the future so they can make the best possible financial decisions.
 

Product Offers
Please ensure that you fully read the terms & conditions of any product or policy before you decide to proceed and are fully aware of the total costs and the benefits and any exclusions or limitations applicable to the product or plan.

Please note that the product links will take you direct to the Issuer or Insurer's site direct and we cannot be held responsible for the information which they provide within their own sites. On some comparison tables we use a star rating which rates products by visitor popularity.