A third of internet users too scared of fraud to hand over credit card details for online shopping

Almost a third of internet users are too frightened to hand over their credit details while shopping online, a report published today found.

The Office of Fair Trading said 30 per cent of internet users do not shop online because of a lack of trust and a fear of fraud.

It added that, although consumer confidence is gradually improving, online markets cannot reach their full potential because it is still too low.

Chief executive John Fingleton said: 'Online retailing is the future for many businesses and increasingly important to the economy.

'If consumers are not confident online, demand will grow at a slower rate. So we must tackle these concerns right now if the online market is to grow at its full potential.'

Minister for Consumer Affairs Gareth Thomas said: 'UK consumers buy almost twice as much over the internet compared to their European neighbours.

'It's encouraging that the OFT's survey shows increasing consumer confidence when buying online - but people still have concerns.
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Senate Nears Completing Credit Card Bill, Blocks 15% Rate Cap

May 14 (Bloomberg) -- The U.S. Senate, working to complete legislation to curb credit-card fees and limit contract changes, refused to cap interest rates on balances at 15 percent.

The Senate may pass the so-called credit-card bill of rights measure as early as today, said Banking Committee Chairman Chris Dodd. Approval would send the measure to a committee to resolve differences with a House version.

“We’ve spent a lot of time over the last number of months trying to help stabilize the financial system,” said Dodd, a Connecticut Democrat. “A lot of attention has been paid to banks. We haven’t spent enough time trying to help consumers.”

Senators yesterday voted 60-33 to invoke budget rules that killed the rate cap proposed by Senator Bernie Sanders, a Vermont independent. Sanders said the action was needed to stop banks from routinely charging 25 percent to 30 percent on credit cards.

“When banks are charging 30 percent interest rates, they’re not making credit available, they’re engaged in loan- sharking,” Sanders said.

The Senate credit-card legislation would require lenders to apply payments to balances with the highest interest rates first. It would prohibit increasing a consumer’s rate on existing balances based on late payments to another lender, a practice known as “universal default.”

The bill would require credit-card companies to give 45 days’ notice before increasing an interest rate. It would prohibit retroactive rate increases on existing balances unless a consumer was 60 days late with a payment. Companies would have to restore the original, lower rate if a cardholder stayed current six months after a late payment.
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China is stock piling GOLD

Tetsuya Yoshii, VP for derivative products at Mizuho Corporate Bank is bullish on gold given China's demand for the precious metal as it diversifies out of U.S. paper and dollar-based assets. He makes his case to Linda Yueh of Oxford University & CNBC's Martin Soong.