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Borrowers could get help from credit card firms

January 8, 2009 by admin  
Filed under News, News-Credit-Cards

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According to recent reports some consumers could get assistance from credit card companies if they are struggling with their credit card debt, as part of a package of proposed measures resulting from recent meetings between officials from the credit card industry and senior government officials. Concerns were raised about the situation in the credit card industry when reports showed that whilst the base rate had been plummeting over recent months credit card interest rates were still very high.

Consumer Affairs Minister Gareth Thomas stated: “The government is deeply concerned that borrowers aren’t getting a fair deal. That’s why we’ve taken swift action to bring the industry in to look at how costs are being applied to people’s existing debts.”

He attended a recent meeting along with the Business Secretary Lord Mandelson, which was also attended by credit card industry officials.

Amongst the things that were discussed at the meeting between the government and the industry were risk based interest rates that would be based on how likely the borrower was to default on the loan. Also, credit card firms said that they would hold off starting the debt recovery process for thirty days if struggling cardholders were receiving advice from appropriate debt advisory officials.

Even the Prime Minister, Gordon Brown, has expressed his concerns over how some customers appear to be getting fleeced by the credit card industry through sky high interest rates, charges, and fees. He has stated that credit card firms need to start treating customers more fairly.

Tags: rate, government officials, Minister Gareth Thomas, deal, Credit history, situation, credit card help, card

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