§ Lord Taylor of Warwickasked Her Majesty's Government:
What steps they will take to ensure that the annual percentage rates charged by credit card companies suppliers are made more transparent; and [HL5406]
Whether in order to protect credit card consumers from exploitative interest rates, they will set a standard method for calculating annual percentage rates of interest. [HL5301]
§ Lord Sainsbury of TurvilleAs the noble Lord is no doubt aware, the Government are nearing the conclusion of their review of the Consumer Credit Act 1974 and plan to publish a consumer credit White Paper outlining their proposals in December.
Alongside the White Paper, we will be consulting on draft regulations to reform laws on the advertising of consumer credit and the form and content of credit agreements. Among other things these will create new requirements to ensure that annual percentage rates (APRs) and other key financial information are displayed more transparently, both in promotional material and on the face of agreements; and will set out the basis of which such APRs should be calculated.