Borrowers 'not getting a fair deal' on credit card - Credit cards - News - Moneyfacts


Borrowers 'not getting a fair deal' on credit card

Borrowers 'not getting a fair deal' on credit card

Category: Credit cards

Updated: 27/11/2008
First Published: 26/11/2008

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Credit card companies are to be urged to lower interest rates in order to provide relief for consumers.

A summit is being held today following's findings that the average rate is more than 17 per cent, despite the Bank of England reducing the official base rate to three per cent.

Providers will meet with business secretary Peter Mandelson as well as consumer affairs minister Gareth Thomas, who will ask them to reduce their charges.

Mr Thomas explained that a set of principles will be sought, encouraging a continuation of lending while asking that borrowers are treated fairly.

"The government is deeply concerned that borrowers aren't getting a fair deal. That's why we've taken swift action to bring the industry in to look at how costs are being applied to people's existing debts," he said.

Earlier this month prime minister Gordon Brown expressed concern, particularly over one store card that was charging 200 per cent interest and a provider that had increased rates by ten per cent overnight.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Top credit cards for Christmas spending

‘Tis (just about) the season to be jolly, but before all that festive fun begins, chances are you’ve got a bit more shopping to do. But, if you’re turning to credit to fund things, you’ll want to use cards that offer 0% interest deals on purchases.

Spooky reality of high balance transfer fees

Credit card debt is scary at any time of year. While most might assume that opting for the longest deal on offer would save them the most, our data shows some of the longest deals can actually work out to be the most expensive.

Reward credit cards that become ‘pointless’

If you regularly use cards to pay at the till, you may have considered opening a reward credit card to earn points every time you spend. However, not all of these cards are as rewarding as they may seem…