Menu
12/12/2008
Credit Card Companies Agree To Play Fair
Credit card companies have agreed with Government to implement a new set of 'fair principles' that will help put an end to overnight hikes in credit card charges and give much-needed breathing space to borrowers struggling to repay their debts.
A fortnight ago, Consumer Affairs Minister Gareth Thomas gave credit card companies a deadline of two weeks to report back with a statement of fair principles, warning that he would ask the Office for Fair Trading to investigate if strong commitments to fairer treatment were not agreed.
Following the meeting with lenders on Thursday, Gareth Thomas said: "I am pleased by the commitments card companies have made to me today.
"I recognise that these changes will not be without financial pain for credit card companies, but it was vital that we nipped in the bud the bad practices that were causing real hardship for borrowers.
"These commitments will help families manage their finances and cope with repaying their debts."
The commitments come on top of the agreement reached at the Minister's Credit Card summit last fortnight that the industry will give a breathing space of up to 60 days to borrowers in difficulty.
That means they won't chase a debt where somebody is trying to get back on their feet and to agree a repayment plan with the help of a not-for-profit debt advice agency.
Those borrowers who have already experienced hikes should complain to their card provider if they felt their rate increase was unfair. If they are unhappy with the handling of their complaint, borrowers can take their case to the Financial Services Ombudsman Service.
If the interest rate has been increased without justification, the Ombudsman can require the lender to compensate the borrower.
The Government will ask the OFT to monitor industry's progress on implementing these principles into the New Year.
(JM)
A fortnight ago, Consumer Affairs Minister Gareth Thomas gave credit card companies a deadline of two weeks to report back with a statement of fair principles, warning that he would ask the Office for Fair Trading to investigate if strong commitments to fairer treatment were not agreed.
Following the meeting with lenders on Thursday, Gareth Thomas said: "I am pleased by the commitments card companies have made to me today.
"I recognise that these changes will not be without financial pain for credit card companies, but it was vital that we nipped in the bud the bad practices that were causing real hardship for borrowers.
"These commitments will help families manage their finances and cope with repaying their debts."
The commitments come on top of the agreement reached at the Minister's Credit Card summit last fortnight that the industry will give a breathing space of up to 60 days to borrowers in difficulty.
That means they won't chase a debt where somebody is trying to get back on their feet and to agree a repayment plan with the help of a not-for-profit debt advice agency.
Those borrowers who have already experienced hikes should complain to their card provider if they felt their rate increase was unfair. If they are unhappy with the handling of their complaint, borrowers can take their case to the Financial Services Ombudsman Service.
If the interest rate has been increased without justification, the Ombudsman can require the lender to compensate the borrower.
The Government will ask the OFT to monitor industry's progress on implementing these principles into the New Year.
(JM)
Related UK National News Stories
Click here for the latest headlines.
08 October 2003
M&S backtracks over &More credit card after OFT probe
Marks and Spencer Financial Services (MSFS) has changed the way it will offer to replace its store cards by the &More credit card after action by the Office of Fair Trading. MSFS had sent out letters to many card holders saying that its store card would automatically be replaced by the &More credit card unless card holders objected.
M&S backtracks over &More credit card after OFT probe
Marks and Spencer Financial Services (MSFS) has changed the way it will offer to replace its store cards by the &More credit card after action by the Office of Fair Trading. MSFS had sent out letters to many card holders saying that its store card would automatically be replaced by the &More credit card unless card holders objected.
11 March 2004
Consumers and lenders could do more to consolidate debts: OFT
Better financial awareness among consumers, and clear, accurate and relevant information from credit providers are required to make the use of debt consolidation fairer and more transparent, according to a study from the Office of Fair Trading (OFT) published today. The OFT has estimated that, in 2002, £32 billion of unsecured lending and £8.
Consumers and lenders could do more to consolidate debts: OFT
Better financial awareness among consumers, and clear, accurate and relevant information from credit providers are required to make the use of debt consolidation fairer and more transparent, according to a study from the Office of Fair Trading (OFT) published today. The OFT has estimated that, in 2002, £32 billion of unsecured lending and £8.
22 August 2013
Customers To Be Reimbursed Following Mis-Sold CPP Card Protection
The Financial Conduct Authority (FCA) has reached an agreement with Card Protection Plan Limited (CPP) and 13 high street banks and credit card issuers, that will pave the way for redress to be paid to customers who were mis-sold CPP's Card Protection and Identity Protection policies.
Customers To Be Reimbursed Following Mis-Sold CPP Card Protection
The Financial Conduct Authority (FCA) has reached an agreement with Card Protection Plan Limited (CPP) and 13 high street banks and credit card issuers, that will pave the way for redress to be paid to customers who were mis-sold CPP's Card Protection and Identity Protection policies.
19 October 2010
E-crime Officers Arrest Suspected 'Money Mule'
Ahead of National Identity Fraud Prevention week, Metropolitan Police Service (MPS) Police Central e-crime Unit (PCeU) has arrested a suspected counterfeit credit card manufacturer.
E-crime Officers Arrest Suspected 'Money Mule'
Ahead of National Identity Fraud Prevention week, Metropolitan Police Service (MPS) Police Central e-crime Unit (PCeU) has arrested a suspected counterfeit credit card manufacturer.
17 November 2011
Car Fuel By Credit Card 'Costs More'
Nearly two thirds of domestic petrol purchases are made by credit card, according to new research by a credit group. The findings by Equifax reveal that more that 58% of us use credit cards to pay for our fuel, just as a further rise in petrol prices is to be debated by MPs in the House of Commons.
Car Fuel By Credit Card 'Costs More'
Nearly two thirds of domestic petrol purchases are made by credit card, according to new research by a credit group. The findings by Equifax reveal that more that 58% of us use credit cards to pay for our fuel, just as a further rise in petrol prices is to be debated by MPs in the House of Commons.
-
Northern Ireland WeatherToday:After a dry start this morning rain will spread from the northwest across all parts. This afternoon will be dull with some patchy rain and drizzle. Becoming much milder through the afternoon. Maximum temperature 11 °C.Tonight:A cloudy evening and night with a little light rain or drizzle, perhaps some clear periods developing along the east coast. A very mild night everywhere. Minimum temperature 10 °C.
