OFT puts store card practices in front of Competition Commission

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Suppliers of store credit cards are set to go up in front of the Competition Commission, because of the market's restrictive and distorted practices, says the Office of Fair Trading.

A comprehensive OFT study of the £4.8bn market suggests there are features of the supply to both consumers and retailers which appear to prevent, restrict and distort competition. In particular, says the OFT, most store cards have an APR of around 10% more than credit cards, yet there is no specific explanation as to why the difference is so high, as the additional costs or benefits to users do not appear to justify the extra charges. According to data gathered by the Office of Fair Trading, around 30% of adults hold a store card, 51% have a credit card and 58% have a debit card. T...

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