OFT to investigate fairness of credit card market
The credit card market is to come under scrutiny from the Office of Fair Trading (OFT) as part of a new investigation to ensure customers are being treated fairly in the economic downturn.
OFT to investigate fairness of credit card market”
The review will incorporate the opinions of credit card holders on how the market can be improved, as well as examining the role of credit reference agencies and how borrowers in financial difficulty are being treated by providers, the Times reports.
Quoted by the news source, OFT chief executive John Fingleton said: "With our focus on credit, we are addressing the area in which there is a real risk of short-term consumer harm, while also ensuring that the sector that emerges from the current crisis is competitive and behaves fairly and responsibly towards consumers."
The consultation is expected to end in mid-June, with results to be published the following month.
It has been welcomed by a host of consumer groups including Which?, who claimed many consumers are worried credit card choice will be limited as a result of the recession.
The government has also been looking into credit card reform recently, announcing last month it is cracking down on irresponsible lending.
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