Summary
DAVID Edelman (Letters, January 11) describes a rational world in which interest rates for credit simply ref lect the degree of risk to the lender ("horses for courses"). But Britons, the most indebted consumers in Europe, are waking up to the reality of "the sophisticated and well-developed consumer credit market" that Mr Edelman boasts of.
The Office of Fair Trading recently told credit-card companies that their penalty charges were unfair. Barclaycard has admitted that 43per cent of its operating income comes from such fees (its own chief executive famously conceded that he'd advise his own family not to use the cards) . Meanwhile, the Competition Commission said last September that store-card holders were being overcharged by GBP100m a year, with interest rates up 20per cent higher than if they simply ref lected providers' costs.See the full content of this document
Extract
The Unpleasant Realities Behind Debt Temptation
The reality is the credit sector is eager to entice as many peop...
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