Credit card companies need new approach, says prim - Credit cards - News | moneyfacts.co.uk

News

Moneyfacts.co.uk News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

Credit card companies need new approach, says prim

Credit card companies need new approach, says prim

Category: Credit cards

Updated: 12/11/2008
First Published: 12/11/2008

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 It is now over 6 months old so the content may be out of date.

Gordon Brown has expressed concern over the rising interest rates that credit card holders are facing.

The prime minister urged credit card companies to adopt a more responsible approach to their lending, as research showed the average rate to be rising.

A spokesman said Mr Brown was particularly alarmed by a store card that is charging 200 per cent, as well as the example of one credit card provider increasing rates by ten per cent overnight.

Speaking yesterday, the premier remarked: "I think we have got to bring the credit card industry in to talk to them to join with us in establishing clear principles to apply to the costs people face on their existing debts."

Despite the Bank of England's decision to cut the official base rate by 1.5 per cent last week, a study of 240 cards by banking research group Defaqto showed credit card rates to be increasing.

The average figure is now at 17.6 per cent, having been 17.2 per cent six months ago.

David Kuo, head of personal finance at Fool.co.uk, warned this week that store cards may be difficult to obtain this Christmas.

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 Any products featured may be withdrawn by their provider or changed at any time.

 
Close