APACS responds to the Prime Minister's call for the credit card industry to treat customers fairly

The credit card industry welcomes today’s call by the Prime Minister, Gordon Brown for the industry to engage with Government; and looks forward to taking part in discussions.

The credit card industry continues to be committed to the principles of responsible lending, and to ensuring that any customer who finds themselves in financial difficulty is treated sympathetically and fairly. This commitment is clearly stated in The Banking Code.  In line with the expectations of the Treasury Select Committee, over the last five years the industry has managed an extensive and ongoing programme on transparency and responsible lending.

Based on our own data on credit card expenditure up to the end September 2008, there is no evidence to show that a large number of customers are using their cards any differently now than previously.  In addition, if customers are borrowing on their cards, and the majority don’t, there are no indications from the Bank of England’s most recent figures, that a large number are undergoing difficulties in repaying those commitments.  In fact, these figures show that spending is lower and repayments on credit cards are higher than they were three years ago. 

It is, of course, essential that we remain vigilant and we will continue to monitor the picture very closely. 

ENDS

For further information contact the APACS Press Office on 020 7711 6340/6234

Notes to editors:

APACS is the trade body that gives banks, building societies and card issuers a forum where they can work together on non-competitive issues. We help manage the way that businesses and individuals in the UK move their money around - this covers cash, credit and debit cards, cheques and automated payments such as Direct Debits, salary payments and the new Faster Payments Service launched on 27th May for online/phone banking transactions and standing orders. We lead the fight against banking fraud and twice a year we publish figures on payment industry fraud losses.