Credit Card Overview
Fact: there are more credit cards than people in Britain and the country's debt problems are amongst the worst in the world.
When choosing a card provider, its policies on responsible lending and debt advice provision are of key importance. The green and ethical concerns you bring to who you bank with, concerns about equal opportunities or the environment, are just as applicable to who you get your credit card from.
This section also looks at the green or ethical worth, as well as the practicalities of charity affinity cards.
Does your credit card provider treat its customers responsibly?
What are charity affinity cards and how do they work?
Does your credit card provider treat its customers responsibly?
Responsible lending
According to the British Banker's Association (BBA), responsible lending means 'providing credit, based on background checks and professional judgement, to people who can accommodate repayments without getting into financial difficulty'. As the sheer number of people in debt today shows, these principles are not always well applied by credit lending institutions. In 2008 our credit card debt hit £54.4bn and continues to rise.
Transparency is key - credit card customers should be presented with the terms and conditions attached to their card up front and in plain English. It is important to check whether your provider has a responsible lending policy in place, and how it is implemented if it does exist.
Debt management
Credit card debt is all too common in the UK. Some financial institutions offer basic in-house debt advice services, the scope of which can vary greatly. Often providers will refer customers to free advice services including the Consumer Credit Counselling Service, the Citizens Advice Bureau and others.
Use our search tool to find details of your provider's debt management services. Information on this subject can be found under 'Responsibility toward Customers'. Alternatively contact your provider directly for further information.
What are charity affinity cards and how do they work?
Affinity card providers make a small donation on behalf of the card holder to the charity it is associated with.
Such charity donations average around 25p per £100 spent. So, in order to donate £100 to your charity of choice you'd have to spend £40,000 with the card. Most providers also make a one-off donation of between £5 and £25 on each new card account.
In their analysis of charity affinity cards moneysavingexpert.com suggest that a more effective way to donate money is to use cash back cards. Cash back cards operate in much the same way as affinity cards except that instead of a charity, additional money goes to the card holder and this money is usually considerably more than a standard charity card donation. The cash back card holder can then donate the money they have earned to the charity of their choice and if eligible, Gift Aid it, so rather than £1 the charity will receive £1.28. Donations on affinity cards are not eligible for Gift Aid.
Your next steps
See our guide Next Steps - Credit Cards for more suggestions on how to find out about your credit card provider's green and ethical policies, how to contact them and how to find the right credit card for you.
Credit Card Search
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Credit Card Provider
Bank of China
Green/Ethical Products
No evidence of specifically green or ethical products found for Bank of China (UK) Ltd.
However Bank of China (UK) Ltd.’s parent company the Chinese based Bank of China Limited offers and promotes Green Credit although there is no evidence that this is available in the UK.
The parent bank has also introduced financing projects based on the clean development mechanism (CDM) and wealth management products based on carbon emissions, in an effort to promote the development of carbon-related financial services in China.
Ethical Lending or Insurance
The parent company Bank of China Limited has a policy (which applies to Bank of China (UK) Ltd) of having requirements concerning environmental safety, energy conservation and environmental protection for its lending policies. However, no further information found on the extent to which this policy would preclude the bank lending to entities on ethical grounds.
Has an ‘Environmental Veto System’ to implement a stringent loan extension criterion. This system strictly controls new credit to industries featuring high pollution and energy consumption. However there is no indication of when this criteria is applied.
Human Rights
No policy was found to indicate that Bank of China (UK) Ltd avoids lending to or insuring companies that directly contribute to human rights violations.
Financial Exclusion
No evidence of provision of products aimed specifically at the financially excluded.
Environment
Bank of China (UK) Ltd.’s parent company Bank of China Limited has an environmental policy (which applies to Bank of China (UK) Ltd) which covers the key areas of climate change, energy efficiency and water usage but not waste management.
Committed to further improvements of its environmental policy highlighted in its CSR Report 2010.
Carbon Neutral
No commitment to become fully carbon neutral was found.
Equal Opportunities
The parent company’s CSR report which also applies to all overseas subsidiaries including Bank of China (UK) Ltd states it does not allow discrimination in any form and applies with all relevant laws.
The policy however does not explicitly cover race, gender, sexuality and disability.
Women on the Board
UK Company:
1/7 women hold top level board positions (14%).
Parent Company:
4/16 women hold top level board positions (25%).
Voluntary Standards & Initiatives
No membership of any relevant charters or initiatives found for either Bank of China (UK) Ltd or its parent company the Chinese based Bank of China Limited.
Charitable Giving
The parent company Bank of China Limited donated RMB 82 million (~£8.7 million) in 2010.
Bank of China (UK) Ltd made no donations in 2011.
The Parent company made donations to help with natural disasters raising money from across the group including Bank of China (UK) Ltd.
The Parent company has continued to contribute to poverty relief in China and is attempting to reduce the economic gap between the eastern and western regions.
Bank of China
- Savings
- Current Account
- Credit Cards
- Loans
- Mortgages
