Bosses bow on credit cards

BANKING chiefs are to present MPs with a standard system for comparing credit cards in an attempt to head off growing political pressure.

Chief executives from leading lenders will tell the Treasury Select Committee on 16 October that they have agreed an industry-wide standard allowing customers to compare charges and interest rates.

Gary Hoffman, chief executive of Barclaycard, told Financial Mail that the industry had already reached an agreement. 'It has not been easy, but everyone is now on-side,' he said.

A standard 'consumer box', to appear on all credit card bills and key documents, was demanded by MPs in July.

Hoffman said: 'Though Barclaycard is often seen as the big bad one in the market, we have led the industry along with the Nationwide and we've got the boxes agreed at APACs (the Association of Payment and Clearing Services, the card industry's trade body).'

But a standard method for calculating annual percentage rates is yet to be agreed. MPs criticised the Office of Fair Trading last week for failing to establish a national standard.

The OFT was also urged to investigate store credit cards, attacked by MPs because of interest rates of up to 30%. US finance group GE was heavily criticised as the main provider of UK store cards.