Many people are very familiar with the latest credit card offers on the market – but what about other developments that have been going on in the industry? 2011 was a big year for news everywhere, and credit cards were no exception. In this article, we take a look back over the developments and news stories that took place in relation to credit cards over the past 12 months.
One of the big news stories in relation to this industry was about PPI, which stands for payment protection insurance. This was a type of insurance that many consumers had taken out to protect them in case they had an accident or lost their job and were subsequently unable to work to pay their bills – such as their credit card bills. However, PPI was often mis-sold and, as a result, many customers ended up complaining to the Financial Services Authority. As a result, the banks and other businesses offering PPI have now largely chosen to compensate their customers for mis-sold PPI.
Elsewhere in credit card news, many providers launched new cards to appeal to consumers, such as cards that offer long introductory offers. For example, 0% balance transfer cards became a key source of competition, with multiple companies putting out new cards with ever-increasing introductory offers to tempt consumers over to their brand. This means that consumers can now often benefit from better introductory deals than ever before.
Of course, we can’t ignore the fact that 2011 was a tough year in economic terms, and this was also reflected in the way we use our credit cards. It has been reported that credit card spending was down by 4% during 2011 despite the fact the number of transactions rose – largely because people seem to be cutting down on their luxury goods expenditure and focusing instead on necessary purchases. However you look at it, it was an eventful year for credit cards and we can expect more of the same in 2012 – let’s just hope it’s consumers who benefit!
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