Changes to card agreements welcomed

The proposal to include a summary box on credit card agreements was welcomed today by the national director of Credit Action (CA), Keith Tonduer.

The plan was outlined in the Banking Code Review and would see the introduction of a plain English summary of the terms and consequences of the credit card agreement. According to CA many people struggle with even the basic concept of how credit works and for this reason card providers must be clearer over how interest builds up.

Mr Tonduer said: "With some cards allowing people to pay a minimum of just two per cent and estimates that over ten per cent of us only pay this amount each month it is important that we all realise that we should pay as much off each month as we can."

CA has been campaigning for the introduction of a summary box for some time.