A new type of statement is to be issued to credit card holders, covering credit card fees and other details which will help them compare deals.
The new credit card statements will cover how much has been spent over what time period as well as any interest fees and other charges that have been incurred. The statement will break down different types of spending, such as in shops and online, balance transfers and cash withdrawals, and will detail the charges and interest for each. Any foreign transactions will also be listed.
The new statements have been developed by the UK Cards Association alongside the department for Business, Innovation and Skills. Some card providers have already started to issue the statements, whilst other customers will receive one a year after their account was opened.
Consumer group Which? has welcomed the statements. Which? expert Martyn Saville said, "Annual statements have the potential to help consumers to keep track of their spending and borrowing. You'll be able to see at-a-glance whether the amount you're borrowing has gone up or down over the year, as well as how much you've been charged in interest and fees. Holding this information will hopefully encourage more people to switch away from poor value products and pay off their debts more cheaply and more quickly.”