Financial Services Bill

I agree entirely. The segmentation of balances and their treatment for interest and repayment purposes is not well understood. In fact, anybody who is even reasonably financially educated would find it difficult to make a precise distinction between them. A hard-nosed approach must be taken to the repayment of high-cost credit. I would like the minimum repayment rates to be increased, as well as a clear indication given on the statement of precisely how the amount added as interest is calculated—that could be done easily. The interest element could be made up of two or three different parts so that the card owner would be able to understand how the charge had been calculated and therefore better able to understand how they could manage it in the most effective and economic way. I agree with the hon. Member for Wolverhampton, South-West that a lot more information could be provided on all credit cards and store cards. The new clause is a step in the right direction, although I would prefer it to go a little further.