Customers unhappy with credit card providers

Many credit card customers say they're unhappy with their lenders because of dubious debt repayment practices.

That's according to a recent study by Nationwide Building Society which claims that nearly two in three credit card customers think it is unfair that lenders make a profit by clearing their cheapest debt first when they make a payment.

Over half of people asked said they would be angry if the lender did this and nearly four in ten said they would be shocked at such procedures happening.

However only one in ten people said they'd be surprised, suggesting that consumers often anticipate such behaviour from credit card firms.

Nationwide's product and marketing director, Chris Rhodes said "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."


The system whereby the cheapest debt is repaid first is common among credit card lenders. The practice is called a negative payment hierarchy.

Essentially, it means the debt with the highest rate of interest will take the consumer the longest period of time to repay.

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