UK store cards face MP’s probe
Treasury Select Committee questions high interest charges
July 8 2003
Store cards issued by UK retailers are to be investigated by the Treasury Select Committee as part of its wider inquiry to the level of credit card charges.
Fashion retailer Arcadia and consumer finance specialist GE Capital will give evidence to MPs investigating concerns about interest rates, initially raised by consumer groups.
GE Capital controls almost half of the store card market in the UK, managing cards for retailers including BHS, Monsoon, Laura Ashley, Mothercare, New Look, Owen Owen, River Island and Arcadia, as well as department stores Debenhams, House of Fraser, and Harrods,
Store cards were identified as an area for particular concern at a previous hearing by the committee. MPs questioned interest rates which can run at up to 30 per cent higher than the best credit card offers.
GE Capital has said it hopes to use the hearing on July 14 to “redress certain misplaced allegations which have been levied at store cards.” The company said store cards were primarily a loyalty device, ather than a “borrowing tool for larger amounts over the longer-term.”
