OFT puts store card practices in front of Competition Commission

clock

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...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Your profession

Reform for modern times: A fairer future for families

Reform for modern times: A fairer future for families

'Could reshape the legal and financial consequences of relationship breakdown'

Julia Peake
clock 17 June 2026 • 4 min read
Carla Brown: PFS will reassert itself as voice of the profession in 2026

Carla Brown: PFS will reassert itself as voice of the profession in 2026

PFS president and chair on building trust

Carla Brown
clock 16 June 2026 • 4 min read
Advisers need 'robust' scam protections as investment fraud losses hit £221m

Advisers need 'robust' scam protections as investment fraud losses hit £221m

Investment fraud up 40% year-on-year

Sophia Panayi
clock 15 June 2026 • 2 min read