Banks admit card charging unfair

Banks faced criticism for sending out unsolicited credit card cheques

When the Chief Executive of Barclays gave evidence to the Treasury Select Committee last year he admitted that his own company's credit card, Barclaycard, was too expensive.

On Tuesday, Barclays was again hauled up before the commitee along with MBNA, the Royal Bank of Scotland and HSBC.

The MPs were far from happy with the improvements that have been made to greater transparency and fairness in credit card charges.

Progress has been made, MPs said, but more needs to be done.

Credit card holders 55% - don't know their rate 64% - keep same card for three years Source: More Th>n

Michael Geoghegan, chief executive of HSBC, and Shane Flynn, chairman of MBNA Europe admitted that it was not fair that consumers face different rules when dealing with different lenders.

Tuesday's hearing is the latest stage in a far-reaching inquiry into credit card charges.

The committee called for summary boxes to be included in all customer account statements and credit agreements.

Summary boxes outline terms and conditions in plain English and state the length of time it takes to pay off debt if borrowers make just the required minimum repayment.

Other stories in today's programme

We visited Rolls Royce's new factory near Glasgow.

Adam investigated a new investment fund specialising in oil start-up businesses.

Fathers are discouraged from taking paternity leave because they feel they will lose money, a report has suggested.