Government proposals to reduce credit card debt?
Government proposals to reduce credit card debt?
- Wednesday, 28 October 2009New government protocol could directly impact upon the number of people that overspend on credit cards and subsequently find themselves suffering from
debt problems.
Proposals include the banning of lenders from increasing interest rates on existing debts, the raising of the minimum payment level and ceasing of unauthorised credit limit extensions.
The consumer-empowering move has been welcomed by the Consumer Credit Counselling Service (CCCS), which has suggested UK citizens will greatly benefit from a more 'responsible' credit card industry.
A spokesperson for the CCCS said: "The government's announcement will reshape the credit card landscape. [It indicates] a desire to put consumers first and to further promote its responsible lending initiatives to tackle the fallout of the recession."
According to the Department for Business, Innovation and Skills' consumer minister Kevin Brennan, credit card companies must "get their act together" and develop a stronger relationship with the UK consumer.

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