Credit card industry speaks out against government proposals
February 10, 2010 by admin
Filed under News, News-Credit-Cards
The credit card industry in the UK has spoken out against one of the measures that has been proposed by the government to try and curb some of the practices used by credit card companies. One of the measures that the government has proposed in order to reduce problems relates to the credit limits that credit card providers offer, and the aim of the government was to try and get credit card companies to reduce these limits.
However, the trade body for the industry, the UK Cards Association, has said that the various measures that had been put forward by the government could create problems for consumers and could push them even further into financial difficulties. The government has been aiming to make credit card companies act more fairly by repaying the more expensive debt first and not changing interest rates without justification on existing debt.
The credit card industry has been told to ‘clean up its act’ by the government, and although lenders are being far more cautious over who they give out credit cards to there are still many practices that the government is determined to crack down on. The UK Cards Association has commented on a two hundred and thirty page report into the proposed changes, and has said that customers will not benefit from many of these changes.
A spokesperson for the UK Cards Association, who is also a former MP, stated: “These options would reduce competition within the industry. They would also have far-reaching consequences for customers and lenders alike and would change the basic ‘deal’ offered by lenders to their customers and lead to increased financial difficulties for many and to more defaults.”
Tags: Stoozing, interest rates, Credit card, Credit history, UK Cards Association, personal finance
