Competition Commission's final report on store cards

Competition Commission's report on store cards finding that there is a competitive upstream market for the supply of the relevant financial services to retailers but that in the downstream market, relating to the "supply of credit and insurance through store cards to retailers' customers", there are a combination of features which give rise to competition concerns.

The features behind the Commission's concerns centre on the lack of competitive pressures by stores on the providers and by consumers on retailers with respect to APR, late payment fees and insurance premiums, on insurance bundling by the financial providers and on the lack of sufficient information on store card statements.

As remedies, the Commission lays out a set of measures aimed at making consumers more aware of the relevant charges (by prescribing certain elements to be included in store card statements), as well as a requirement for store card providers to separate payment protection insurance from packages containing payment, price and purchase protection.

Filed under Competition Commission.

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