DTI Sleeping On Job Over Creit Rates Confusion

2.40.27pm UTC (GMT +0000) Tue 4th Nov 2003

Norman Lamb MP, Lib Dem Treasury Select Committee Member

Norman Lamb MP, Liberal Democrat Member of the Treasury Select Committee, today accused Trade and Industry Ministers of ignoring the problems people have in understanding interest rate calculations on credit cards.

Speaking after OFT Chairman John Vickers and DTI Minister Gerry Sutcliffe MP appeared in front of the Treasury Select Committee, Mr Lamb said: "The DTI and OFT have perpetuated the confusion people have when looking at their credit card interest rates by ignoring suggestions from the industry that one single system for the calculation of APR interest should be used."

"The DTI has known about the ambiguities that exist since 1998 but has clearly been sleeping on the job by adopting the industry's approach."

"Mr Sutcliffe has conceded that the Government is not acting fast enough, but there seems to be little sense of urgency to get things right when they could solve the problems at a stroke."