OFT Cracks Down on Credit Card Marketing

The consumer watchdog is to investigate leading credit providers amid fears that they are flouting laws that require the advertised headline interest rate to be offered to most applicants. Legislation on the advertising of loans and credit cards, which came into force in October last year, forbids banks from offering enticing low interest-rate offers unless 66 per cent of customers are successful in their application. But a recent investigation by the Office of Fair Trading (OFT) found that 60 per cent of advertisements for loans and credit cards were flouting these laws. Moneyfacts, the price comparison website, welcomed the move by the OFT. A spokesman said: "This is great news for consumers because they will know that if they apply for a loan or a credit card they will have the same chance of being successful, whatever lender they apply with." Moneyfacts has criticised the OFT’s reliance on trading standards officials and citizens advice bureaux to weed out lenders that break the law.
[The Times page 51 - 4.10.05.]