The Transparency Box

Credit Card Charges Explained

The Transparency Box shown on credit card statements is known by many names. In the United States the Transparency Box is known as a Schumer Box (named after Senator Chuck Schumer), and in the UK the credit card industry refers to it as the Summary Box. Other names include the Clarity Box, the Consumer Box and the Honesty Box.

Since March 2004 all credit card agreements have carried a table displaying a Transparency Box with all the costs for which the cardholder is liable, resulting in easier comparison to similar products as well as simplifying the facts and figures. The Office of Fair Trading welcomed the introduction of the Transparency Box and all the major banks pledged their commitment to the scheme.

However there is still growing concern about the level of consumer debt in the UK and its social and personal consequences, and further reform of the Banking Code may be required if the UK is serious about reducing its Trillion Pound Debt.

In July 2003, the Treasury Select Committee spoke to representatives of the credit card industry about the transparency of credit card charges. It was particularly interested in looking at the way charges were presented and how hidden charges could be incurred by credit card holders.

Barclaycard was singled out for criticism for charging interest rates of up to 24.9% at a time when the Bank of England Base Rate was so low and John McFall MP, chairman of the committee ordered industry and bank chief executives to appear before the committee at a later date. It didn't help matters when Barclays chief executive, Matt Barrett, openly criticised his own product for being too costly and continued to add insult to injury by going on to say that he did everything he could to dissuade his four children from using credit cards as a means of borrowing.

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