13 April 2005
The situation where credit card customers can pay different interest repayments, while their cards have the same Annual Percentage Rate (APR), though confusing, is set to continue.
The anomaly arises because of the way card providers calculate what is due and when.
On Monday the government said the differences would continue.
However consumer groups have called for reforms, Which?'s Emma Bandey said: "The government seems to have fallen for the industry line that a standard way of charging interest will limit competition, in fact it will mean providers can compete on cost and consumers can choose the cheapest card for them."
Nick White, head of personal finance at price comparison website uSwitch.com, added: "By working out interest in such different ways, credit card companies make it almost impossible for consumers to compare cards, and therefore make it very difficult for them to choose the right product."
Use uSwitch's impartial credit card calculator to compare all credit cards and find the card to suit your needs.
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