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"Credit card firms reject many proposals"

By admin | March 1st, 2010 | Credit Cards

A number of proposals have been put forward recently to try and increase fairness for credit card customers, with the Department for Business Innovation and Skills making a number of proposals to try and protect consumers.

However, according to recent reports the majority of the proposals that have been put forward to credit card companies have been rejected by the providers, which means that consumers could still suffer unfairness when it comes to their credit card accounts.

A number of proposals had been made by the Department of Business Innovation and Skills to try and make things fairer for credit card customers, but according to recent reports the credit card industry has rejected the majority of the proposals. In fact, the industry has gone a step further and has announced plans that could result in around two million borrowers paying extortionate rates on their credit card borrowing.

Amongst the proposals that the Department of Business and Innovation had put forward were a ban on increases in credit limits that had not bee requested, an increase in minimum repayments for customers so that their debts would be cleared more quickly, and a ban on borrowing rate changes at short notice and for no apparent reason.

One of the other proposals related to the allocation of repayments, where the Department wanted the more expensive debt paid off first.

Reports claim that the credit card industry has agreed partially to the final request relating to the allocation of repayments, and has rejected the other three requests completely.

The UK Cards Association has stated that it wants the credit card firms to be able to decide which of the debts are paid off first with repayments that are made by credit card customers.

Tags: UK Cards Association, Department of Business and Innovation, Credit Cards, Department of Business Innovation and Skills

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