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FLA comment on pricing of credit card interest rates
Responding to Moneyfacts’ research on credit card APRs, Fiona Hoyle, Head of Consumer Finance at the Finance & Leasing Association, said:
“An unfortunate consequence of the recession is that some credit card customers have seen higher interest rates. This reflects higher risks - the latest figures from the Bank of England show that credit card debt write-offs doubled in Q3 2009. Lenders must price responsibly in a challenging market and ensure that, so far as possible, the rates they charge reflect the risk they face. That is why some customers have also seen their interest rates fall.
“It is also important to recognise that the average APR figure from Moneyfacts excludes zero-percent deals on purchases and transfers and does not take into account rates for existing customers.”
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Note to editors:
The FLA is the leading trade association for the asset, consumer and motor finance sectors in the UK, covering secured and unsecured loans and credit and store card providers. In 2009 FLA members provided £52 billion to the consumer finance sector, representing almost 30% of all unsecured lending in the UK.
For further media information, please contact:
Helen Saxon, FLA
T: 020 7420 9664 E: helen.saxon@fla.org.uk M: 07918 766 993