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27/10/2009
Credit Companies Must 'Give Consumers A Better Deal'
The Government has today announced new proposals to ensure that credit and store card companies give people a fairer deal.
Consumer Minister Kevin Brennan said card companies have to "get their act together" in order to help consumers.
"The Government is putting forward new measures today which we believe will give consumers a better deal. I want to hear from the most important people, the customers, about their experiences and to get their views on our proposals.
"My opinion is clear, the current relationship between card companies and consumers cannot go unchallenged. We need to put the customer back in the driving seat," he explained.
"It is not acceptable for card companies to impose complex and confusing terms and conditions that can leave people baffled, or to increase interest rates without a proper explanation. Consumers have a real responsibility to manage their finances properly, but they also have a right to clear information to enable them to do that. Consumers should not feel each month as if they’ve been exploited or disadvantaged."
The Government today published a consultation document giving the detail of proposed changes in the law on repayment policies imposed by credit and store card providers. The consultation builds on action already taken by the Government. It examines:
"We think it's simply wrong to entice people into spending more than they can afford and then to squeeze as much money out of them as possible."
The credit and store card consultation runs until January 19 and people can read the proposals and register their views at:www.bis.gov.uk/creditconsultation
(GK)
Consumer Minister Kevin Brennan said card companies have to "get their act together" in order to help consumers.
"The Government is putting forward new measures today which we believe will give consumers a better deal. I want to hear from the most important people, the customers, about their experiences and to get their views on our proposals.
"My opinion is clear, the current relationship between card companies and consumers cannot go unchallenged. We need to put the customer back in the driving seat," he explained.
"It is not acceptable for card companies to impose complex and confusing terms and conditions that can leave people baffled, or to increase interest rates without a proper explanation. Consumers have a real responsibility to manage their finances properly, but they also have a right to clear information to enable them to do that. Consumers should not feel each month as if they’ve been exploited or disadvantaged."
The Government today published a consultation document giving the detail of proposed changes in the law on repayment policies imposed by credit and store card providers. The consultation builds on action already taken by the Government. It examines:
- Changing the rules that set out the order in which debts built up on a credit card are paid off.
- Raising the minimum monthly repayments levels to encourage people to pay off their debt faster.
- Banning the practice of increasing credit limits without prior consent.
- Placing restrictions on increasing the interest rate on existing debt.
"We think it's simply wrong to entice people into spending more than they can afford and then to squeeze as much money out of them as possible."
The credit and store card consultation runs until January 19 and people can read the proposals and register their views at:www.bis.gov.uk/creditconsultation
(GK)
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'Fair deal' for loan repayers proposed
People who repay loans early will get a "fairer deal" under changes outlined by the government today. The government has found that around seven-in-10 personal loans are settled early, but people often have to pay big charges if they do so. The government wants to scrap the rules that penalise customers.
'Fair deal' for loan repayers proposed
People who repay loans early will get a "fairer deal" under changes outlined by the government today. The government has found that around seven-in-10 personal loans are settled early, but people often have to pay big charges if they do so. The government wants to scrap the rules that penalise customers.
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Northern Ireland WeatherToday:It will be cloudy again throughout the day. Mainly dry in the morning, but patchy drizzle in places, becoming more widespread and persistent in the afternoon. Freshening southwesterly winds. Maximum temperature 12 °C.Tonight:Cloudy with a spell of heavy rain pushing south through late evening and the early hours, followed by some clear spells. Minimum temperature 6 °C.
