Changes in the way in which credit cards are advertised should make it easier for borrowers to understand what they are agreeing to when they take out a card, Apacs have suggested.
New advertising regulations due to coming into force in June will make it compulsory for credit card lenders to display important information in a standardised “summary box†on all adverts for new credit cards, with information such as interest rates and payment terms amongst the details to be included.
Regulations do exist on advertisements for credit cards and other forms of loans at present although there are currently no specified standards on how clear those messages have to be. The introduction of a uniform standard is likely to be similar to those enforced on the motoring and tobacco industries and should make it easier for consumers to compare products and shop around for the best deal.
Michelle Whiteman, the corporate communications officer at payments association, Apacs, said: "The summary box was revised after research undertaken by the credit card industry revealed that information formatted in tabular, bullet point or numbered list made it simpler for consumers to compare the products."
It is also believed that the introduction of an industry-wide advertising standard will improve competition and encourage lenders to offer lower interest rates and better deals.
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