MPs came close to lying at Monday's Treasury Select Committee hearing on store cards, according to a leading card provider.
GE Consumer Finance client management director Seamus Smith slammed claims made at the hearing that store cards are a 'cosy cartel' run by retailers and that their interest rates are 'highway robbery'. He lambasted committee chairman John McFall MP for making statements that were 'just not true'.
McFall and the MPs ignored retailers' submissions in order to procure tabloid headlines, Smith claimed. 'I was disappointed that the select committee decided not to look at the balanced submission we made, which pointed out the benefits of store cards to consumers as well as retailers,' he said.
Smith, whose company provides cards for Debenhams, Bhs and Comet, said: 'We're not going to duck under the parapet. The product is sound, we manage it very sensibly and everyone benefits.'
The controversy featured prominently on newspaper front pages, but retailers declined the opportunity to comment when contacted by Retail Week.
GE'S CLAIMS
What GE Consumer Finance says about store cards:
- Customers are not led into borrowing unsuspectingly
- APR rates are neither hidden nor written in a way to confuse customers
- Customers are not subject to hidden fees and charges
- Store cards do not result in widespread indebtedness.
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