Research by buy now, pay later business Klarna has found that one in six people with a credit card don’t know how much interest they are being charged.
In Brief:
The research by YouGov was commissioned by Klarna, which often advertises itself as an alternative to credit cards.
Klarna says no respondents in the survey could accurately determine how much a credit card purchase could cost, with interest.
It was also noted that the credit card firms were adhering to all regulations necessary in terms of disclosing interest.
What does this mean?
The research shows that despite regulated credit providers adhering to all the necessary disclosure rules, things still don’t seem clear for the typical consumer who uses a credit card. The results have prompted Klarna to work with consumer interest agency Fairer Finance to call for a revision of the current requirements.
