New credit card rules to benefit consumers

New industry regulations for credit cards in the UK are to be introduced by the end of this year. The series of changes to existing card rules will benefit cardholders and also offer those with several cards to their name to deal with their debt in a more flexible and effective way.

The measures, intended to offer a better deal to existing card customers, could help slash hundreds of pounds from credit card bills, are due to come into effect from January 2011.

The new rules force providers to allocate payments to the transactions attracting the highest rate of interest, which in itself could collectively save consumers between GBP300 million and GBP500 million. Another change will be providing cardholders with the right to reject proposed credit limit increases on their existing debt.

Providers will also be obliged to present a range of market information on their statements at the end of the year. This will allow customers to compare their credit cards at the end of each 12-month period, giving them greater choice and flexibility in moving between different cards. These changes are timely given the current economic climate and the worrying levels of personal debt in the UK.