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
Lloyds TSB
Green/Ethical Products
- Islamic Bank Account.
- Community Fund
- Basic Bank accounts.
- Credit Union accounts.
- Charity accounts.
Ethical Lending or Insurance
Since 2011 Lloyds TSB’s parent company Lloyds Banking Group has used its Environmental Risk Screening Tool (ERST) to assess its environmental risk in its transactions. Transactions are dealt with on a case-by-case basis, with over 13,700 transactions assessed since the introduction of ERST.
Lloyds Banking Group is also a signatory to the Equator Principles, in order to support its approach to assessing and managing environmental and social issues in project finance transactions. The Group report publically on the transactions, their categorisation and outcomes that fell in to the scope of this framework. In 2012, no transactions were declined or approved with exceptions as a result of this process
However, it does not disclose the lending exclusion criteria.
The Group’s specialised Environmental Risk team apply focus to the transactions ERST identifies with potentially heightened environmental risks. They are also supported by the Group’s Panel of environmental consultants.
Human Rights
Lloyds TSB’s parent company Lloyds Banking Group has a human rights policy which applies across all its business practices worldwide. (See Here). This according to their 2012 Code of Business Responsibility applies to their investment, lending and service operations.
Applies the Equator Principles to applicable projects which includes an assessment in respect of Human Rights.
Financial Exclusion
Offers:
- Cash Account.
- Community Finance.
- Basic Bank Accounts
Lloyds TSB has supported South Coast Moneyline, a Community Development Finance Institution (CDFIs), since its launch ten years ago. South Coast Moneyline focuses on providing home improvement loans for people who have assets, but not cash.
Lloyds TSB provides the following in its branches:
- Ramps, clearer signage and the installation of power-assisted doors.
- Where branches have split-level banking halls, they provide internal ramps or wheelchair lifts.
- Low-level counters and counter queue rails.
- Leaflets in large print, Braille or on audio tape. These can be ordered in branches to be sent direct to the customer.
- Cheque book templates to simplify the writing of cheques.
- Bank note guide to help identify the value of bank notes.
- A raised dot on number 5 of the keypad to help identify surrounding keys.
- You can contact them via Typetalk or by using BT Textdirect.
- Induction Loops.
- Interpreting Service.
- SignVideo Interpreting System.
- Telephone/Online Banking.
- Aims to create a ‘Dementia Friendly Financial Services Charter’
- Made a commitment to not close a single branch if it is the last in the town.
Lloyds Banking Group's Wholesale Division has raised funds to build a new branch of Opportunity International Savings and Loans Ltd, a provider of microfinance services, in Mankessim, Ghana.
The Group’s Wholesale Division has also had a long-term partnership with the charity Opportunity International over three years. As well as financial support, representatives from the Group have also provided their skills and expertise.
No evidence found that the company invests in or lends at lower rates to financially excluded communities.
Environment
Lloyds TSB’s parent company Lloyds Banking Group’s environmental policies cover the areas of: climate change, energy efficiency, waste management and water usage.
Lloyds Banking Group is committed to continued improvement through its targets for 2013.
Carbon Neutral
No commitment to become fully carbon neutral was found
Equal Opportunities
Lloyds TSB’s parent company Lloyds Banking Group’s equal opportunities policy addresses the key issues of race, gender, disability and sexuality.
Women on the Board
Parent Company:
3/10 women hold top level board positions (30%).
Voluntary Standards & Initiatives
Lloyds TSB is not a member / signatory by itself of any relevant initiatives, but its parent company Lloyds Banking Group is a member of or signatory to the following relevant charter or initiatives:
- Carbon Disclosure Project
- Equator Principles
- The Prince of Wales's Corporate Leaders Group on Climate Change
- Natural Capital Leaders Platform
- The London Benchmarking Group (LBG) (a group of over 100 companies working together to measure Corporate Community Investment)
- The Banking Environment Initiative of the University of Cambridge (convened in 2010 to identify ways in which banks can collectively redirect capital away from environmentally damaging activities towards environmentally beneficial ones)
- UKSIF
- Business in the Community (a business-led charity focused on promoting responsible business practice) and its initiative Race for Opportunity, and Scottish Business in the Community
- Climatewise
- Employers Forum on Age and Employers Forum on Disability.
- Dementia Friendly Financial Services Charter.
- Go ON UK.
Charitable Giving
- Invested £85 million last year in grassroots charities, financial inclusion and capability and sports for young people.
- Much of Lloyds Banking Group’s community investment initiatives are through the Lloyds TSB Foundations and Bank of Scotland Foundation – five independent charitable Foundations supported solely by the Group.
- The Charity of the Year programme is the Group's key fundraising initiative. Lloyds Banking Group’s Charity of the Year for 2012 was Save the Children. The project raised £3.6 million to help over 12,000 children in local communities through Schools Together (FAST) projects in some of the UK’s most disadvantaged communities.
- Lloyds Banking Group has a range of community programmes supported through direct investment and encouragement of colleagues to support communities with their skills and knowledge.
- Time contributions were made by 32,000 employees in 2012 which can include supporting their existing programmes such as Money for Life and Business Connectors, or some other community project.
- In kind contributions including using company premises, their in house training or recruitment resources for community benefit.
Lloyds TSB
- Current Accounts
- Savings
- Investments
- Credit Cards
- Loans
- Mortgages
- Insurance (Home, Car, Life, Critical Illness, Travel, Mobile Phone).
- Private pension
- Student Current Account
- Islamic Student Account
- Student Credit Card
Lloyds TSB
Lloyds TSB Bank Scotland plc.
Registered Office:
25 Gresham Street,
London
EC2V 7HN.
