By Lea Pachta
R3 President Steven Law commented on the government's consumer protection announcement: “We welcome today’s announcement by the new Conservative and Liberal Democrat coalition to ban excessive interest rates on credit and store cards as well as introducing a seven-day "cooling-off period" for store cards.
“The practice of financially unqualified shop staff offering store cards at point of sale means that many vulnerable consumers don’t understand that they are entering into a legally binding contract and that store cards must be handled just like any other credit card.”
“A recent poll of insolvency practitioners showed that 66% of our members have seen cases where people have signed up for store cards without any understanding of “what they had let themselves in for”. We know that this contributes to the mountain of personal debt in the UK and entices vulnerable customers into debt. By introducing a cooling-off period customers now have the chance to give their cards back without reprisal.”
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