Credit card proposals could bring repayment worries 'Down Down'

creditcard1 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….


  • Loz
    Too little, too late.
  • Harry
    @ Loz, bloody too right. The horse has already bolted.
  • Paul
    In response to Melanie Johnson, the only point that may be of detriment to existing card holders is: • increasing the minimum amount that must be paid off each month to accelerate the overall rate of repayment If they can't afford higher payments, obviously it's no good! So all they need to do is make that OPTIONAL for current card holders, and mandatory for all new accounts. There's no way any of the other 3 changes can be seen as potentially detrimental!
  • CompactDstrxion
    Look, we all know these corrupt institutions will get their money somehow. They'll all just raise the interest rates even more. The customer will never 'win' it's just tinkering before election time.
  • andy y.
    Just wait for a HBOS style £3 a day for every day your payment is late.
  • CompactDstrxion
    And Paul, this would be where most of the detriment to existing card holders will come from.
  • Junkyard
    Melanie Johnson says: "These proposals risk disadvantaging more customers than they protect.” Melanie Johnson means: "If you take away these particular methods for us to skank our customers out of their money, we will be compelled to find ever more devious ways of continuing to do so. In no way could we possibly contemplate simply being content with making enormous profits for doing nothing, instead of the utterly ridiculous profits we have been making so far."
  • Marty P.
    folks this aint the socialist workers paradise of North Korea. Credit card companies exist to make profits for shareholders not take it in the ass from card tarts and shopaholics. They dont offer you free money cus they like you If they cant make a reasonable profit by charging you for a service which you find advantageaous to use then they wont bothering offering it to you. Feel free to borrow from Big Ron and his baseball weilding goons next time.
  • zeddy
    @Marty Party: Well said! Now those of us who have a basic appreciation of how to manage our own money will lose out as the CC companies will stop the 0% deals to tempt us card tarts due to having to spoon feed the twats who cannot count to 5.
  • Marty P.
    I would also add that issuing credit cards is a costly and expensive business with infrastructure overheads. Big Ron just has to buy a new bat every few days and pay his goons to wield it. Credit card companies have costs, and it is a balancing act, and not simply dishing out plastic to every person who asks nicely and then sitting back and counting the money. You need needs software and people to be actively managing your portfolio of holders, you need people to pay back the money- yes even at high interest rates, if you just lent money out and didnt get it back you would be in trouble. Has anyone noticed how last year there were loads of adverts on telly for a certain card provider and none this year? Maybe they dont need anymore customers who cant pay? I dont know, whats in your wallet?
  • charitynjw
    "Pick a card; any card" - & watch your money 'magically' disappear!

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