Consumers who received money on their store card accounts before a credit law change in May this year, could possibly be paying as much as 25.4 percent in interest and paying additional admin fees for their store cards.
As the festive rush begins, Just Money and Moneybags editor Angelique Ruzicka has warned consumers to be aware of what they can afford, and not to overspend on their store cards.
When the National Credit Regulator (NCR) came in and said store card and credit card issuers can only charge up to 21 percent, they said this would be as of 6 May. So this is not retrospective, meaning you won't automatically receive that interest rate— Angelique Ruzicka, editor at Just Money and Moneybags
Speaking on #NightTalk's Money Matters, Ruzicka described how new credit law changes from 6 May this year, which reduced interest rates for credit cards and store cards, affect store card holders.
What one store card provider did tell us was that if people got more money since the sixth of May, then that will automatically change to the 21 percent. But its still something that consumers should check— Angelique Ruzicka, editor at Just Money and Moneybags
Listen to the conversation below:
Ruzicka recommends the following to ensure you spend less of your money on store cards: