The Department for Business, Innovation and Skills has launched a consultation into the malpractices of the credit card industry.
Measures proposed by the government report will help to stop lenders hiking interest rates on existing credit card debt, allow customers to make higher repayments if they have the means to do so and reverse negative payment hierarchies.
The Consumer Credit Counselling Service (CCCS) has commented on the move, saying that it will bring back responsible lending activities to the industry after the prevalence of bad practices associated with the recession.
A spokesperson for the CCCS explained: "Currently, people struggling to pay off the minimum or less on their card debts each month are not helped by complicated terms and conditions, and systems which are effectively geared towards keeping them in a state of debt for longer."
Moneysupermarket.com recently found that consumers feel cheated when they realise their credit card providers are charging them more through a negative payment hierarchy.
Government to tackle credit card company behaviour
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Government to tackle credit card company behaviour
Thu, 29 Oct 2009
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