As well as providing more and better information on monthly statements, card providers will have to give customers the option of paying by direct debit, the Commission said. They must also market payment protection cover separately from other insurance offers.
The Commission said that consumers have been charged interest rates on average 10 per cent to 20 per cent too high and estimated borrowers have been overpaying for credit by at least£55 million a year.
The toughest measures will apply to card providers that charge annual interest rates of 25 per cent or above.
The Commission's deputy-chairman Christopher Clarke, who chaired the inquiry, said: 'Retailers and store card credit providers are effectively insulated from competitive pressures. The consequence is that store cardholders who take up credit and associated insurance pay too much.'
About 11 million people hold store cards, with a total outstanding balance of more than£2 billion.
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