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Credit card rules will aid responsible borrowing

Credit card rules will aid responsible borrowing

Category: Credit cards

Updated: 23/03/2009
First Published: 23/03/2009

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 It is now over 6 months old so the content may be out of date.

New rules relating to credit card limits will encourage consumers to face up to debt problems earlier, an expert has argued.

Beccy Boden Wilks, spokesperson for the Money Advice Trust, noted that "credit is not a bad thing" if it is used correctly, but irresponsible borrowing has been seen in the past.

Last week the government announced that credit card firms will no longer be allowed to raise limits if a customer does not request it, a move supported by the charity.

And Ms Boden Wilks explained that the measure may ensure that consumers do not continue to build up the amount they owe, stating: "It could be that it will mean people will have to confront the problem earlier."

Other measures included in the package unveiled by prime minister Gordon Brown included plans to provide clarity over the issue of debt enforcement, with full independent regulation of the bailiff industry to follow.

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