At the same time, consumers' sensitivity to APR (annual percentage rate interest rate) levels and other charges is low. Taken together, this results in store cardholders who take up credit, and associated insurance, paying more than they would in a fully competitive market, |
Consumers' sensitivity to APR levels and other charges is low, |
Retailers and store card credit providers are, we have found, effectively insulated from competitive pressures. |
There are features of the store card market that effectively insulate retailers and consumer credit providers from competitive pressures. |
There are scenarios where it would be a beneficial and acceptable tool, but there are also cases where it could be a usurping of power. This is a fine line the executive body is going to have to walk. |
This results in store cardholders who take up credit, and associated insurance, paying more than they would in a fully competitive market. |