Big banks accused of 'cynicism': UK

The UK's BBC News reports that:


The big banks have been accused of 'bare faced cynicism' by an influential committee of MPs. In often heated exchanges, members of the Treasury Select Committee quizzed the chief executives of Barclays, HBOS, Royal Bank of Scotland and Lloyds TSB about how they treat their credit card customers. Under the spotlight were the interest rates that big banks charge their credit card customers.
One prominent member of the committee described the marketing tactics employed in attracting new card business as "a bait and a trap." <snip>

Barclays was accused of "bare faced cyncism" by MP Jim Cousins for a recent offer to cardholders, which allowed them to transfer balances from rival cards without incurring any interest - as long as the cardholder spent at least £50 a month on the card. Cash back offers were similarly condemned as a 'bait and a trap' by the MP.

<snip>

The Committee tried to push the bankers on plans to introduce so-called credit card 'honesty boxes' on credit card offers. The honesty box, also known as a Schumer box, draws together all the costs spread throughout the small print of a credit agreement into a single table, making loans easier to compare and understand. Apacs, a credit card industry body, has promised that all credit card agreements will carry a honesty box by March 2004. All the big banks were committed to the introduction of the new boxes, Mr Barrett told the committee. His bank's card offers would start displaying honesty boxes this month.

<snip>

At a hearing of the committee earlier this year, store cards came under a barrage of criticism from MPs. The credit card companies behind expensive store cards were accused of being "designer loan-sharks". In angry exchanges, the committee also said the companies were "fleecing customers" with high interest rates. MPs said store card repayment rates of up to 32%, at a time when the Bank of England (BoE) base rate stand at just 3.5%, amounted to 'usury.'
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http://news.bbc.co.uk/1/hi/business/3194902.stm


They COULD get honest and launch a new credit card: "The Bare Faced Cynicism Card" - the card that 'says more about you than money every can!'