Credit card industry to draw up proposals - Credit cards - News - Moneyfacts

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 industry to draw up proposals

Credit card industry to draw up proposals

Category: Credit cards

Updated: 28/11/2008
First Published: 28/11/2008

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 It is now over 6 months old so the content may be out of date.

The industry was called in to meet with business secretary Peter Mandelson and consumer affairs minister Gareth Thomas after findings that disproportionately high interest rates are being charged.

Of particular interest was the issue of risk-based re-pricing, which has seen rates increased significantly for certain groups after companies decided their risk levels had changed.

A joint statement revealed that firms are to report back in two weeks with new principles, which will "address issues such as proportionality, frequency and transparency".

"The purpose is to help borrowers manage their debts during the downturn," the statement added.

A commitment was also made to give a 30-day grace period before beginning collections activity when a debt agency notifies a company that a particular consumer is struggling.

Moneyfacts.co.uk recently found that the average interest on credit cards is now 17.2 per cent.

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 Any products featured may be withdrawn by their provider or changed at any time.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

Credit card mistakes cost borrowers £948m

At this time of year, many people could be turning to balance transfer credit cards in an attempt to overcome their Christmas debt. However, many of these borrowers could get caught out in the year ahead, and they could end up paying for it.

6 of the best balance transfer credit cards

Does the thought of opening your credit card bills fill you with fear? If so, you're not alone! Christmas may be over, but unfortunately, many people will still be paying for it, after turning to credit to cover the cost of their festive spend.

Get a better credit score for the New Year

A new year means a fresh start, and one of the best things you can do is take a cold, hard look at your finances – particularly when it comes to your credit score.
 
Close