Customers 'failing to read credit card small print'

A new study indicates that many credit card customers may be failing to read the small print on their contracts.

Research conducted by Nationwide found that 63 per cent of credit card customers do not understand the order in which their payments are allocated.

While this figure is down six per cent on the 69 per cent lacking knowledge of the rules in 2007, it indicates that some consumers may be putting themselves at risk.

Nationwide reports that some providers prioritise the repayment of debts with the lowest rate of interest attached, meaning customers may be racking up greater liabilities than they realise.

Chris Rhodes, product and marketing director at Nationwide, commented: "Our research results are unequivocal: consumers still don't understand this issue and continue to be penalised.

"Further transparency will simply not work. This is a fairness issue and a positive order of payments is now the fairest way forward for consumers."

Last week, Experian urged consumers to only make credit applications which are likely to succeed, as any failed attempts to access the best credit card offers will be stored on their record, reports MSN.

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2009-12-16 10:14:06 © Moneyextra.com