Page 13 - The UK Cards Association Annual Report 2012

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The UK Cards Association is the representative body for UK
card issuers and card payment acquirers.
Our primary function
is to facilitate co-operation between industry participants on
matters of mutual interest (within the constraints of Competition
Law) and to provide a clear and cohesive industry voice to
external stakeholders.
We seek to influence the development of the
card payments industry in the UK by providing
a strategy in areas where our members can
co-operate on key issues. The Association
represents industry views to the Government,
the European Commission, regulators, the media,
law enforcement, consumer bodies, retailers
and other influential external stakeholders.
Our work involves ensuring that major
legislative changes and regulatory interventions
are balanced and meet the interests of both
industry and customers without resulting in
inadvertent, unintended or undesirable
consequences. We seek to ensure that any
decisions that affect the 93% of UK adults that
hold plastic cards are based on well-grounded
evidence. To this end we publish facts on
industry experience, such as credit card lending
or fraud, being the authoritative source for
definitive key management information.
We respond to criticism and seek to amend
practices where it is appropriate to do so,
delivering and promoting real advances in
areas such as transparency, responsible
lending and data sharing.
The UK Cards Association has a unique
vantage point on the industry. Specialist
groups of member representatives focusing
on key issues such as fraud prevention; legal
and regulatory matters; data sharing; credit
policy; the rollout of contactless card
payments; the development of payments
using mobile technology; acquiring; and external
communications, report to the Board, comprising
the heads of the UK card businesses.
What We Would Like To See
The card industry has many demands
made of it. However, the industry itself
has its own agenda that it believes will
benefit the industry and customers alike.
The UK Cards Association would like to
see the following changes:
• Development of a complement to the
APR for credit cards – the APR does
not serve customers well;
• Consumer Credit Law simplified so
that the information that lenders
provide to consumers is meaningful
and easy to understand;
• Demonstrable progress with the
Government’s cross Whitehall data
sharing group to deliver prioritised and
evidence-based data sharing between
the public and private sectors, enabling
better risk assessment;
• Better public-private data-sharing to
support fraud prevention initiatives;
• Clarification of ambiguous sections of
the law that are being exploited by
Claims Management Companies to
consumers’ detriment;
• Wider adoption of contactless and
mobile contactless payments by
consumers and retailers.
Source: British Bankers’ Association,
Finance and Leasing Association,
Bank of England, National Statistics
Student loans
£40 bn
Major British banks overdrafts
£9.6 bn
Other MFIs personal lending
£12 bn
£4.5 bn
Store cards
£1.6 bn
Other credit grantors
£43 bn
Major British banks personal loans
£45 bn
Credit card delayed payments
£20 bn
Credit card credit outstanding
£38 bn
Unsecured lending to individuals in 2010