A little rant about store cards!!

milliemonster

I tend to agree with the OP aswell, yes I know we are all responsible for signing these things and we're not forced to do it, but its the fact that you are offered easy credit in what is usually a busy shop with a queue of people waiting behind you and the assistant doesn't tell you all the details, just that 'you can get 10% off your order now' which to the uninitiated is very attractive, with any other form of credit now they give you 'key facts' documents and allow you the 'time' to read through everything carefully before signing, you can't do this in a busy store so I think it should be illegal to sign up for these instore, you should have to take the paperwork home to read through and sign and send off or something first

masterkay

Morn wrote: »

Ok so am I the only person who thinks that it is simply to simple to obtain credit in this country.

Considering the debt problems currently wrecking peoples lives I am surprised no one else has actually said that they get my point.

People get checked and declined as well as accepted.

Back in my student days and crappy jobs in shops I did my fair share of helping customers fill in these applications and not everyone got one. So it's not as if they are being given away with happy meals.

People have free will. They want to take it without looking at the APR that is their problem and they should learn to read the small print on in the case of many places the large print on the big sign.

Morn

masterkay wrote: »

People have free will. They want to take it without looking at the APR that is their problem and they should learn to read the small print on in the case of many places the large print on the big sign.

Although I said I was going to drop this, I disagree with your point.

The advertised rate was a variable apr and was bill at 19.9% apr. When I got the paper information I discovered that the rate actually given was actually higher than the big banner.

The rate I got was printed on the credit agreement that was signed by myself so I agree that the onus is on me to check things first, however I took the offer to get the discount and not to clock up debt.

Frankly my issue was that there was no advice from a trained person when I was opening the account, if I was visiting a bank I would know that the person offering me the product had some knowledge of credit etc..

As I said, I am done with this rant now.

jonnyenglish

Morn wrote: »

Although I said I was going to drop this, I disagree with your point.

The advertised rate was a variable apr and was bill at 19.9% apr. When I got the paper information I discovered that the rate actually given was actually higher than the big banner.

The rate I got was printed on the credit agreement that was signed by myself so I agree that the onus is on me to check things first, however I took the offer to get the discount and not to clock up debt.

Frankly my issue was that there was no advice from a trained person when I was opening the account, if I was visiting a bank I would know that the person offering me the product had some knowledge of credit etc..

As I said, I am done with this rant now.

Quite frankly, I think you are a bit naive to expect a store assistant to spend time expanding on the product terms and conditions of a storecard out of altruistic professionalism. At the end of the day you obtained credit in a shop and not a bank, from a person whose job it is to sell products, for (I suspect) the pure benefit of obtaining a discount for yourself. Did you not think to cancel the agreement since the figures you were informed of were incorrect or might that have invalidated your discount?

I work in a profession where I daily see members of the public unprepared to take responsibilty for their own actions and lifestyle choices and when things don't go their own way try to pass the buck or pick fault with others. People who complain about the financial institutions not being responsible lenders remind me of such people. This country is largely in the state it is today because of such complainers.

*Gets off soap box*

dylanuk

I think it's quite harsh to just have a go at someone for not knowing about store cards. Half of the problem of store cards is the way they are sold - by non-financially trained shop assistants, and sold as a quick discount of what you're buying.

I've read in the news that store card interest rates are set to be hiked up by about 5% p.a. for the Christmas spend - http://www.credit-card-comparison-online.co.uk/news/store-cards.html.

I think they are pretty despicable, and really should be closed down. I think that guy from the Tories (how rememberable he is) was saying he was going to stop store cards - or at least limit the amount of interest they were allowed to charge to a more "reasonable" rate.

dylanuk

Ooops - sorry - wrong link! - Here's the right one: http://www.credit-card-comparison-online.co.uk/news/credit-card-news/26-September-2008.html

Morn

jonnyenglish wrote: »

Quite frankly, I think you are a bit naive to expect a store assistant to spend time expanding on the product terms and conditions of a storecard out of altruistic professionalism. At the end of the day you obtained credit in a shop and not a bank, from a person whose job it is to sell products, for (I suspect) the pure benefit of obtaining a discount for yourself. Did you not think to cancel the agreement since the figures you were informed of were incorrect or might that have invalidated your discount?

I work in a profession where I daily see members of the public unprepared to take responsibilty for their own actions and lifestyle choices and when things don't go their own way try to pass the buck or pick fault with others. People who complain about the financial institutions not being responsible lenders remind me of such people. This country is largely in the state it is today because of such complainers.

*Gets off soap box*

And again I agree with you in part.

I am so surprised that people seem to be throwing pseudo abuse at me here.

I will take issue with the naive statement because anyone selling a credit product should take the time to show the customer the necessary details which include the actual apr on the product. Having one rate on display simply does not cover the argument that as the rate displayed is not necessarily the rate you get.

I am simply saying that although I took the card simply for the discount and have absolutely no intention of using the thing again, I was merely concerned at the simplicity of the process.

I agree that no one forced me to take it and that all I had to say was no, I agree that it should be the customers responsibility to ensure they have the salient facts before entering into a credit agreement, but I put it to anyone who has had a little pop that not everyone is finically minded.
In this instance I have used it to my advantage and would do so again, when I do in the future I will again probably be concerned at the simplicity of the process.

rl290

I agree with the original poster - it is pathetically easy to get credit in the UK. This is part of the reason for the credit crunch.

Part of this is a naivety; people consider store cards in the same way they regard discount vouchers, rather than a serious financial product.

Part of the problem is financial education; there are plenty of people who don't understand credit ratings and APRs.

Another gripe is that people view buying things like clothes (generally a luxury rather than a necesity) as their "right", so will buy with credit rather than earn the cash first.

And, of course, the store assistants generally tell you to sign up for the discount, and don't themselves really understand the products (why would they)?