Labour's plan to ban credit card betting stands to save consumers £545 million on fees and interest.
Commenting on Labour Deputy Leader Tom Watson’s call for a ban on using credit cards to gamble, Alastair Douglas, CEO of Free Credit Report provider and credit experts TotallyMoney, said: “A blanket ban on the use of credit cards would be a massive win for consumers. “For regular purchases, people usually get an interest-free grace period, which doesn’t apply when credit is used to gamble. The trouble is that most people aren’t aware of how much gambling with credit truly costs them — that is, not until their bill arrives. A TotallyMoney survey of 1,000 people revealed that only 1 in 10 people are aware that gambling with credit is treated as a cash advance, which means higher-than-average interest rates apply. “What’s more, a recent report by the Gambling Commission says up to £8.6 billion of gambling deposits are made using credit cards. Assuming an average cash transaction fee of 3.23% and an average cash advance interest rate of 28.13%, we calculated that consumers stand to save £545 million each year on fees and interest. “That’s why TotallyMoney is more than happy to welcome a blanket ban on gambling with credit — not only because it would save people a lot of money, but also because it would solve the problem of people spending more than they can afford by gambling with credit.”
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TotallyMoney believes people’s financial data should work for them, and not against them and with more than four million customers, they provide the UK’s only free, live credit score and report.
Its service helps customers understand their financial position and provides personalised recommendations so they can start creating financial momentum. TotallyMoney also works closely with leading lenders, to ensure eligible customers are matched with the right products, underpinned by its robust data, product and tech capabilities.
TotallyMoney is regulated by the Financial Conduct Authority (FCA).