The office of Fair Trading has announced that it will be launching a website that will enable consumers to compare different credit cards in order to find the card that offer them best value for money based on their needs and circumstances. Like other price comparison sites, consumers will be able to access the website, enter the required details with regards to their credit card needs and repayment habits, and the site will then bring up a list of cards that could prove suitable for the consumer.

The move is part of a process being put into place by the watchdog in order to try and curb the rip off charges and small print that card companies use, which officials claim confuse consumers and end up netting the credit card companies £400 million in extra profits. Other steps that are being taken by the Office of Fair Trading in order to try and control this problems is insisting that credit card companies use an honesty box on all marketing materials and statements summarising the terms of use clearly, and stopping card companies from using technical financial jargon that lay people would find difficult to understand.

There are also concerns that consumers are failing to compare and shop around for credit cards, thus many are getting a raw deal, and it is hoped that the credit card comparison site from the OFT will help. One official said: “No one wants to throw money away, but consumers who don’t shop around for credit cards are doing just that. It is essential that consumers are given the right tools to make comparisons between credit cards more easily, and we can achieve this through some of the recommendations announced today which have received widespread support.”