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Minimum repayment health warning - PUBLISHED 1 January 2011Representing. Informing. Advancing Page 2Table of contents 1 Introduction.....................................................................................................................................................................................................................1 2 Minimum Repayment Health Warning Best Practice Guidelines.................................................................................................................1 Representing. Informing. Advancing Page 11. Introduction Credit card statements carry a warning to deter customers from only ever making the minimum payment on their credit cards Card companies have agreed a health warning to appear on customer statements in response to concern regarding cardholders only ever making the minimum repayment on a regular basis, with the objective of deterring such behaviour. This warning, positioned close to the minimum repayment figure, advises all customers that making only the minimum repayment each month means that money borrowed will take longer to pay off, and that it will cost more. This is now also a requirement under the CCA. This guideline has been incorporated into the Lending Code. 2. Minimum Repayment Health Warning Best Practice Guidelines 1. Introduction 2. Health warning 3. Effective date To deter cardholders only ever making the minimum repayment on an ongoing basis, the industry has developed a health warning to appear on customer credit card statements close to the minimum repayment figure. The warning reads: "If you make only the minimum payment each month, it will take you longer and cost you more to clear your balance." This best practice minimum repayment health warning message is effective from 1 January 2011. Minimum Repayment Health Warning |
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