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
| Please click on any of the credit card providers below to find out more |  |
 |
 |
 |
 |
 |
 |
 |
||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
 Credit Card Providers |
Criteria | |||||||||||||||
|
Allied Irish Bank (GB) and Allied Irish Bank (GB) Savings Direct |
|
|
|
|
|
|
|
9 | ||||||||
|
|
|
|
|
|
|
20 | |||||||||
|
|
|
|
|
|
|
|
25 | |||||||||
|
|
|
|
|
|
|
|
10 | |||||||||
|
|
|
|
|
|
|
|
30 | |||||||||
|
|
|
|
|
|
|
|
17 | |||||||||
|
|
|
|
|
|
|
|
17 | |||||||||
|
|
|
|
|
|
|
|
18 | |||||||||
|
|
|
|
|
|
|
|
23 | |||||||||
|
|
|
|
|
|
|
|
16.7 | |||||||||
|
|
|
|
|
|
|
|
17 | |||||||||
|
|
|
|
|
|
|
|
31 | |||||||||
|
|
|
|
|
|
|
|
25 | |||||||||
|
|
|
|
|
|
|
|
9 | |||||||||
|
|
|
|
|
|
|
|
30 | |||||||||
|
|
|
|
|
|
|
|
27 | |||||||||
|
|
|
|
|
|
|
|
25 | |||||||||
|
|
|
|
|
|
|
|
30 | |||||||||
|
|
|
|
|
|
|
|
20 | |||||||||
|
|
|
|
|
|
|
|
22 | |||||||||
|
|
|
|
|
|
|
33 | |||||||||
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
18.1 | |||||||||
|
|
|
|
|
|
|
|
33.3 | |||||||||
|
|
|
|
|
|
|
|
40 | |||||||||
|
|
|
|
|
|
|
|
25 | |||||||||
|
|
|
|
|
|
|
|
25 | |||||||||
|
|
|
|
|
|
|
|
18 | |||||||||
|
|
|
|
|
|
|
|
18 | |||||||||
|
|
|
|
|
|
|
|
17 | |||||||||
|
|
|
|
|
|
|
|
30 | |||||||||
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
33.3 | |||||||||
|
|
|
|
|
|
|
|
14.3 | |||||||||
|
|
|
|
|
|
|
|
16.7 | |||||||||
Credit Card Provider
Handelsbanken
Green/Ethical Products
Sweden Ethical Index and Global Ethical Index Funds.
These funds comply with the GES Global Ethical Standard and do not invest in companies whose annual turnover is comprised of more than 5% of the production in and/or earnings from the sale of pornography (0% in Sweden Ethical Index), military materials, tobacco or tobacco products, alcohol or gambling.
No explicit indication they are available in the UK. Although they are mentioned on the UK website.
Ethical Lending or Insurance
Handelsbanken policy is that the customer is fully responsible for its operation and how it is run. They do however have a fundamental condition that the operation is legally compliant and fulfils all requirements from public authorities in terms of environmental questions and other sustainability matters.
The Bank however does take ethical and environmental issues into consideration in its credit risk assessment.
The bank always aims to maintain sound ethical standards meaning the bank always aims to respect human rights and fundamental principles of working conditions and environmental considerations regardless of where in the world it lends.
Sustainability Report 2012.
All operations at the Bank must comply with high ethical standards. When issues of an ethical nature arise, these must be discussed with the employee’s line manager, who can refer the issue to Central Group management at the Bank if necessary. The Central Board of the Bank must be kept informed of significant events and considerations which relate to the Bank’s ethical guidelines.
Human Rights
No policy was found to indicate that Handelsbanken avoids lending to or insuring companies that directly contribute to human rights violations
However the Bank has expressed support for universal human rights. The Bank also ensures it is not involved in any breach of human rights. When granting credits the Bank takes into account its customers attitudes to human rights.
Sustainability Report 2012.
Financial Exclusion
No evidence of any accounts, products, or services aimed specifically at the financially excluded.
No evidence that the company provides direct financial support to or engages in partnerships with Credit Unions and CDFIs (Community Development Finance Institutions).
Handelsbanken states it is the only bank in 50 locations and so provides services to those who would otherwise be excluded.
Sustainability Report 2012.
The majority of the Banks branches in Sweden are accessible to customers with reduced mobility or sense of direction.
Sustainability Report 2012.
No evidence found of Handelsbanken’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
Handelsbanken’s environmental policy covers the key areas of climate change, energy efficiency and waste management but not water use.
Has identified new initiatives to further reduce the Bank’s environmental impact. Including increasing awareness, increase proportion of green electricity usage, increase amount of recycled refuse.
Carbon Neutral
No commitment to become fully carbon neutral was found.
Equal Opportunities
Handelsbanken’s diversity policy takes into consideration the key equality issues of race, gender, sexuality, and disability.
Sustainability Report 2012.
Women on the Board
Parent Company:
3/11 women hold top level board positions (27%).
Voluntary Standards & Initiatives
Handelsbanken is a member of or signatory to the following relevant charter or initiatives:
- The UN Global Compact.
- The UN Universal Declaration of Human Rights.
- ICC Business Charter for Sustainable development.
- UN’s Banks and the environment programme (UNEP FI).
- UN’s Global Compact voluntary inactive.
- UN Principles of Responsible Investment (UNPRI).
Charitable Giving
Contributed to research and higher education since the early 1960’s.
Awarded SEK 130 million in grants in 2012. (~ £13 million)
Sustainability Report 2012.
Handelsbanken
- Savings (Cash ISA)
- Investments
- Current Account
- Credit Cards
- Loans
- Mortgages
Handelsbanken
Svenska Handelsbanken AB (publ).
Handelsbanken,
3 Thomas More Square,
London,
E1W 1WY,
Great Britain.
