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UK shoppers who use store credit cards with an Annual Percentage Rate (APR) of more than 25% will find alerts on their account statements advising them that they can get a better deal someplace else. About two thirds of store credit cards that are offered in the United Kingdom fall into this above 25 per cent category in order to generate a warning.

The move to provide consumers with the warning follows an inquiry last year by the Competition Commission, which found APRs on store credit cards were excessive. Calculations by the Commission estimated that store card users have been overcharged a minimum of £55 million annually. Store credit card accounts in the United Kingdom total approximately eleven million.

The Finance and Leasing Association (FLA) represents providers of store credit cards and stated that the industry was prepared for the change that was inspired by the Competition Commission. According to a spokesman for the FLA, some providers have already started to lower their rates. Providers are moving forward and implementing the Competition Commission requests, including the requested information on statements.

Research conducted by Moneyfacts indicates that approximately two-thirds of store cards in the UK charge APRs between 25 and 29.9 percent. In the future, these card providers will be required to incorporate warnings on their statements. The Competition Commission recommendations to providers of the store cards requesting that they consider 25 percent as a high interest rate has been ignored by the biggest majority of providers according to a Moneyfacts spokesman.