Credit cards Updated:
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.
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