May 15, 2007

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  NEWS: Laura Ashley Sends Cards, Causes Uproar

  Clothing and furniture retail agent Laura Ashley has caused no small degree of commotion in the British press recently. By exploiting a loophole in the Consumer Credit Act which, in spirit, is meant to protect consumers against unsolicited credit card mailings. Laura Ashley recently mailed thousands of credit cards to British consumers, cards that were often both not asked for and unwanted. Apparently, what Laura Ashley did was perfectly legal, albeit quite against the nature of the CCA. While they are far from the first retailer to take this action, by being the latest, they have spurred some lawmakers to call into question how the loopholes in the CCA that favor retailers can be closed for good.
  
  Laura Ashley claims that the cards are "upgrades" of the store card that many consumers currently hold. There is a big difference, however. The store cards have generally low limits, and are only good for use in one store. The new cards are credit cards with a much higher average limit, and ability to be used anywhere. Additionally, they carry an interest rate of anywhere from 24-29%. Laura Ashley claims to have sent a mailer preceding the cards, asking consumers to contact them if they did not want the forthcoming cards to be sent to them.
  
  Consumers are almost unanimously upset about the gesture, as the mailing on unsolicited cards through the mail opens them up to the possibility of identity theft. Should a crook intercept their mail, with the unsolicited (and unexpected) card sitting ready for pickup, the consumer could incur identity theft charges for a while before becoming aware of them. The OFT says that it has no plans at present to review the CCA, but lobbyists against the practices taken by Laura Ashley and its peers say that they have no plans to back down easily.
  
  
  
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