In summary
27 July 2005
Source: HBOS press release
NOP research*, conducted on behalf of Halifax Credit Cards, showed that people's awareness of summary boxes has almost doubled. When questioned, almost half (45%) of the people questioned were aware of summary boxes (even if they didn't have a card). This compares to a figure of one in four (28%) from the year before**.
Ian Corfield, head of Halifax Card Services, comments: 'Customers need to be aware of the rates and charges applicable to their particular credit card. Summary boxes make this possible.
'Although many lenders feature summary boxes in their marketing literature, many fail to include it on their credit card statements. All Halifax credit card statements feature a personalised summary box - and have since February 2004.'
Seven out of ten people (67%) thought summary boxes were a good idea. Of these, nearly all (94%) thought it should be compulsory for credit card providers to feature a personalised summary box.
The most recent Treasury Select Committee (TSC) report into Credit Card Charges and Marketing*** praised the wording in Halifax summary boxes and observed that summary boxes were ' essential in ensuring that consumers are kept informed of the key interest rates and charges of their credit cards and are properly equipped to shop around and determine whether they could obtain a better deal elsewhere'.
Most importantly, the TSC went on to say: 'We do not believe consumers should have to wait until the middle of 2006 for the summary box to be introduced on monthly statements in a consistent manner across all the industry.'
Ian Corfield continues: 'Summary card boxes are an essential tool in the comparison of credit cards. Customers can only benefit from their introduction. We're calling on all lenders to introduce personalised summary boxes as a matter of urgency.'
Halifax research also showed that nearly two thirds (63%) of those in favour of the summary boxes thought they should be introduced immediately.
All Halifax credit cards feature a personalised summary box on the front page of the statement. By looking at the front page of their statement Halifax customers can see:
Their own credit limit and available credit
Last month's payments and credits
Interest rates for balance transfers, purchases, cash and cheques
The appropriate interest free period
The minimum payment required + payment date together with a 'health warning' about making only the minimum payment
Cash advance fee if applicable
Any fees and charges which are applicable
How payments are allocated
Next month's estimated interest
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