News Categories

• Banking
• Breakdown Cover
• Car Insurance
• Credit Cards
• Home Insurance
• Insurance
• Life Insurance
• Loans
• Money
• Mortgages
• Pensions
• Pet Insurance
• Travel Insurance

News Archive

• February 2012
• January 2012
• December 2011
• November 2011
• October 2011
• September 2011
• August 2011
• July 2011
• June 2011
• May 2011
• April 2011
• March 2011

Newsletter

Credit card users give new rights

By Sarah Engle, Mon 15 Mar 2010 - Published in Credit Cards

The government has unveiled new rights and lower costs for the country's credit card users.

Prime minister Gordon Brown announced that the government has made an agreement with credit and store card companies which will benefit the UK's 30 million users and give them more control over their financial affairs.

Under the agreement, a customer's most expensive debt will be paid off more quickly, credit increases for those in financial difficulty will be banned and better repayment plans will be offered to new customers.

Mr Brown commented: "These new rights will put an end to the irresponsible lending practices that people have been most concerned about and help cut the cost of borrowing."

Kevin Brennan, consumer minister, added that the new rules represent a "big win" for credit card users and will help to prevent convenient lending leading to unmanageable levels of debt.

Last week, moneysupermarket.com pointed out that repaying an extra £10 per month over the minimum would cut the repayment time of a £1,989 credit card balance from 22 years and ten months to just eight years and seven months.