The chief executive of Barclays Bank yesterday admitted he did not use a Barclaycard to borrow money because it was too expensive.

Appearing before the Treasury Select Committee, Matthew Barrett was criticised for the fact that while interest rates had fallen by more than two thirds since 1992 to just 3.5 per cent, interest charged on a Barclaycard had come down from 24.6 per cent to 17.9 per cent. Asked by the chairman of the committee John McFall, Labour MP for Dumbarton, what he considered an excessive rate of interest, he replied: "I think if I had to pay more than I can get elsewhere in the market, I would consider going elsewhere." Committee member George Mudie, Labour member for Leeds East, then asked if that meant Mr Barrett had a Cahoot card in his wallet as they charged interest at just 8 per cent. Mr Barrett replied: "I don't borrow on credit cards because it is too expensive." He added that he also advised his grown-up children not to run up credit card debts. The committee, which was investigating the transparency of credit card charges, also heard evidence from the chief executives of Lloyds TSB, Royal Bank of Scotland, HBOS and MBNA European Bank.

Friday October 17, 2003