Oral question asked in the House of Lords, by Baroness Greengross (Crossbench). It was answered by Lord Sainsbury of Turville (Labour) on Wednesday, 14 December 2005.

Interest Charges: Store Cards

Question: Whether they intend to include provision in the Consumer Credit Bill to prevent store card providers charging interest on the full statement value from the date of first purchase, in circumstances where the card-holder has already paid off most of the balance.

Answer: My Lords, there are no plans to include any provisions in the Consumer Credit Bill that would address the specific issue raised by the noble Baroness. However, in 2004, regulations came into force that require lenders to give consumers clear information about the key features of credit products, including the way in which interest is treated. The Consumer Credit Bill will also improve consumers’ rights by giving them more effective options to challenge unfairness in credit relationships, and to resolve disputes with lenders. It will also improve the powers of the Office of Fair Trading to take action against lenders who exploit or harm consumers.

Secondary information