Credit card companies need new approach, says prim - Credit cards - News - Moneyfacts

News

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 It is now over 6 months old so the content may be out of date.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 Any products featured may be withdrawn by their provider or changed at any time.

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…
 
Close