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
Capital One UK
Green/Ethical Products
No evidence of any specifically green or ethical products found.
Ethical Lending or Insurance
Not applicable. The company does not offer commercial lending or insurance services.
Human Rights
Not applicable. The company does not offer commercial lending or insurance services.
Financial Exclusion
Offers a “Classic Credit Card” designed for customers who do not have a credit history or wish to rebuild their credit history.
No evidence that the company provides direct financial support to or engage in partnership with credit unions or CDFI’s (Community Development Finance Institutions).
Mobile app to view account information. In terms of accessibility, the company provides documents in large text, braille or a taped version for disable customers.
No evidence found of Capital One UK’s involvement in any microfinance or microinsurance projects.
No evidence found that the company invests in or lends at lower rates to financially excluded communities.
Environment
Capital One UK’s environmental policy covers the key areas of energy, waste management and climate change but no evidence of a water policy was found.
No evidence found of Capital One’s commitment to continued improvement of its environmental performance. However the parent company has a dedicated Environmental Sustainability Office (ESO) to facilitate Environmental governance which is responsible across the enterprise.
Carbon Neutral
Capital One Canada is carbon neutral however no commitment to become fully carbon neutral was found for Capital One UK.
Capital One UK was recently awarded its Carbon Trust certification completing an assessment of practices and declaring intent to boost business returns by cutting carbon emissions, saving energy and commercializing on low carbon technologies where business and economic needs allow.
Equal Opportunities
Capital One UK’s parent company Capital One Financial Corporation has a diversity policy which takes into consideration the key equality issues of race, gender, sexuality and disability.
Women on the Board
Capital One UK:
1/5 women hold top level board positions (20%).
Parent Company:
2/11 women hold top level board positions (18%).
Voluntary Standards & Initiatives
Capital One abides by the 'The Lending Code', a voluntary code which sets the standard for good banking practice.
http://www.capitalone.co.uk/aboutus/csr-marketplace.jsf
No membership of any other relevant charters or initiatives found for either Capital One UK or its parent company the U.S based Capital One Financial Corporation.
Charitable Giving
According to the parent company’s website their community strategy has, since 2005, focused on helping children at risk. These programmes seek to support looked after, disabled or disadvantaged children within local areas. One of the ways they do this is through using sport as a channel to engage, motivate and build the aspirations of young people.
http://www.capitalonecareers.co.uk/our-vision
The website also states that the parent company made $45 million in philanthropic grants during 2012.
Capital One UK
- Credit Cards
Capital One UK
Capital One (Europe) plc.
Registered Office:
Trent House,
Station Street,
Nottingham,
NG2 3HX.
