The Government has published a consultation document giving the detail of proposed changes in the law on repayment policies imposed by credit and store card providers, inviting the views of the Industry as well as consumer groups.
Consumer Minister Kevin Brennan said:
Card companies have to get their act together and do more for consumers. The Government is putting forward new measures today which we believe will give consumers a better deal. I want to hear from the most important people, the customers, about their experiences and to get their views on our proposals.
Proposed changes include:
Banning increasing credit limits without prior consent of customers.
Raising the minimum monthly repayments levels to encourage people to pay off their balance faster.
Placing restrictions on increasing the interest rate on an existing debt.
Stopping credit card companies make customers pay the cheapest debt off first. This happens to consumers who withdraw cash on their cards, typically charged at 25% APR or more.
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