Credit card customers 'should be educated'

Tuesday, February 23rd 2010

Consumers should be looking after themselves when it comes to credit cards, according to director of Credit Action Chris Tapp.

Mr Tapp was commenting after financial expert Ros Altmann called for an industry regulator during an interview on BBC News (February 21st).

She claimed that excessive credit card rates exist and that a regulator would be able to prevent companies from charging fees of 18 per cent.

But Mr Tapp says the issue is far more complicated than blaming the companies.

"Nobody is forcing consumers to pay more than they must," he explained.

If customers are properly educated and informed about what products are on offer they will be more likely to make "sensible decisions".

Mr Tapp added that schools are now issuing lessons in finance, so the future generations may be wiser on the issue.

"One of the silver linings of a recession is that it makes people sit up and take notice of how they manage their finances," he noted.

Credit Action was established in 1994 and serves as a money education charity, which aims to offer advice and training on finance.