Credit card proposals could bring repayment worries 'Down Down'
Your caring, sharing government are proposing new proposals which they propose will make having a credit card more of a pleasurable experience and less like a series of random, blindfolded fiscal assaults.
Among the proposals they’re proposing include…
• changing the order of priority for credit card repayments, so that the most expensive debts, such as cash advances, are paid off first
• increasing the minimum amount that must be paid off each month to accelerate the overall rate of repayment
• banning the practice of raising borrowers' credit limits without their prior consent
• restricting or banning increases in interest rates on debts already incurred.
The proposals come on top of legislation that is currently going through Parliament that will outlaw the issuing of unsolicited credit card cheques to customers.
In response, Melanie Johnson, chair of the UK Cards Association stuck up for her members and risked a slew of unsolicited offers to play a pantomime villain this Christmas when she blathered: "We need to be able to demonstrate what impact these would have on consumer choice and the costs to customers of using credit cards. We will be reviewing the evidence and we expect the government to do the same. These proposals risk disadvantaging more customers than they protect.”
The proposed proposals are now being put out to consultation by the Department for Business Innovation and Skills (BIS).
Coming up later on, we’ve got a revolutionary pair of remote-controlled vibrating pants. Now though, it’s Status Quo, with ‘What You’re Proposing’ – take it away boys….